Aurora Baking is preparing its cash budget and expects to have sales of $60,000 in January, $70,000 in February, and $70,000 in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?

Aurora Baking is preparing its cash budget and expects to have sales of $60,000 in January, $70,000 in February, and $70,000 in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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AURORA BAKING IS PREPARING ITS CASH BUDGET AND EXPECTS TO HAVE SALES OF $60,000 IN JANUARY, $70,000 IN FEBRUARY, AND $70,000 IN MARCH. IF 20% OF SALES ARE FOR CASH, 40% ARE CREDIT SALES PAID IN THE MONTH AFTER THE SALE, AND ANOTHER 40% ARE CREDIT SALES PAID 2 MONTHS AFTER THE SALE, WHAT ARE THE EXPECTED CASH RECEIPTS FOR MARCH?