Question
SHOW ALL WORK Shown below is the sales forecast for Max Company for the first four months of next year. On average, 50% of credit
SHOW ALL WORK
Shown below is the sales forecast for Max Company for the first four months of next year.
On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is: A. $138,000
B. $122,000
C. $119,000
D. $108,000
Shown below is the sales forecast for Max Company for the first four months of next year.Jan Feb Mar Apr Cash salesS15,000 524,000 $18,000 514,000 Credit sales 5100,000 $120,000 $90,000 $70,000On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is: A. $138,000 B. $122,000 C. $119,000 D. $108,000Step by Step Solution
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Fundamentals Of Quality Auditing
Authors: B. Scott Parsowith
1st Edition
0873892402, 978-0873892407
