Question
Southwest Equipment offers a 3% discount to customers who pay cash at the time of sale and a 2% discount to customers who pay within
Southwest Equipment offers a 3% discount to customers who pay cash at the time of sale and a 2% discount to customers who pay within the first 10 days of the month after sale. Past experience shows that cash collections from customers tend to occur in the following pattern
Compute the total cash budgeted to be collected in March if sales forecasts are $364,000 for January , $425,000 for February , and $500,000 for March. Cash collected at the time of sale - 60% Collected within the cash discount period in the first 10 days of the month after sale - 10 Collected after cash discount period in the first month after sale - 15 Collected after cash discount period in the second month after sale - 13 Never collected - 2 |
January sales after the discount period - ?
February sales within the discount period - ?
February sales after the discount period - ?
March sales after the discount period - ?
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