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please show calculation with step by step. thank you Information pertaining to Collection Corporation's sales revenue is presented below: November December January Cash sales :3
please show calculation with step by step. thank you
Information pertaining to Collection Corporation's sales revenue is presented below: November December January Cash sales :3 198,999 $ 137,666 $ 96,666 Credit sales 399,999 462,999 246,999 Total sales $ 498,999 $ 599,999 $ 336,999 Management estimates that 5% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected In the month of sale and the remainder in the month following the month of sale, The company desires to begin each month with an inventory equal to 75% of the sales projected for the month, All purchases of inventory are on open account; 20% Will be paid in the month of purchase, and the remainder paid in the month followmg the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted cash collections in January by Collection Corporation areStep by Step Solution
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