Question
Place, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July
Place, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July Budgeted sales $299000 $289000 $319000 $279000 $209000 Budgeted purchases $143000 $119000 $127000 $131000 $89000 Customer amounts on account are collected 60% in the month of sale and 40% in the following month. Cost of goods sold is 70% of sales. Crane purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. Operating expenses are: Salaries, $49000; Depreciation, $11000; Rent, $14000; and Utilities, $13000. Accounts payable is used only for inventory acquisitions. How much cash will Place receive during May from customers?
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