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Swifty, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July
Swifty, 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 | $300700 | $291000 | $321000 | $281000 | $210400 |
Budgeted purchases | $143900 | $120000 | $128000 | $132500 | $90200 |
Customer amounts on account are collected 65% in the month of sale and 35% in the following month. | |
Cost of goods sold is 70% of sales. | |
Swifty purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. | |
Operating expenses are: Salaries, $49600; Depreciation, $11600; Rent, $15400; and Utilities, $14800. | |
Accounts payable is used only for inventory acquisitions. |
How much cash will Swifty receive during May from customers?
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