A company has actual sales of $80,000 in March, $65,000 in April, and expects sales of $90,000 in May, $110,000 in June, and $95,000 in July. Assuming that sales are the only source of cash inflows and that half of sales are for cash, and the remainder is collected evenly over the following 2 months, what are the company's expected cash receipts for May, June, and July?

A company has actual sales of $80,000 in March, $65,000 in April, and expects sales of $90,000 in May, $110,000 in June, and $95,000 in July. Assuming that sales are the only source of cash inflows and that half of sales are for cash, and the remainder is collected evenly over the following 2 months, what are the company's expected cash receipts for May, June, and July?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 5MC

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