Question
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 40,000 $ 140,000
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
| Cash Sales | Credit Sales | |||
| January | $ | 40,000 | $ | 140,000 |
| February | $ | 45,000 | $ | 160,000 |
| March | $ | 39,000 | $ | 120,000 |
| April | $ | 34,000 | $ | 119,000 |
| May | $ | 44,000 | $ | 190,000 |
| June | $ | 70,000 | $ | 130,000 |
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on sales:
55% in month of sale
40% in month following sale
5% in second month following sale
The accounts receivable balance on January 1 of the current year was $82,000, of which $63,000 represents uncollected December sales and $19,000 represents uncollected November sales.
The total cash collected during January by LaGrange Corporation would be:
$190,000
$192,000
$140,000
$216,000
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
| Cash Sales | Credit Sales | |||
| January | $ | 40,000 | $ | 140,000 |
| February | $ | 45,000 | $ | 160,000 |
| March | $ | 39,000 | $ | 120,000 |
| April | $ | 34,000 | $ | 119,000 |
| May | $ | 44,000 | $ | 190,000 |
| June | $ | 70,000 | $ | 130,000 |
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on sales:
55% in month of sale
40% in month following sale
5% in second month following sale
The accounts receivable balance on January 1 of the current year was $82,000, of which $63,000 represents uncollected December sales and $19,000 represents uncollected November sales.
The total cash collected during January by LaGrange Corporation would be:
$190,000
$192,000
$140,000
$216,000
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Business Finance 101 Monopolies Accounting Audits And Blockchain
Authors: Louis Bevoc
1st Edition
1791808182, 978-1791808181
