Avril Company makes collections on sales according to the following schedule: 60% in the month of sale. 37% In the month following the sale. 3% in the second month following the sale. The following sales have been are expected: Expected Sales January $160,000 February $170,000 March $160,000 Budgeted cash collections In March should be budgeted to be: A. $163,700 B. $158,900 C. $160,480 D. $160,000

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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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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Avril Company makes collections on sales according to the following
schedule:
60% in the month of sale.
37% In the month following the sale.
3% in the second month following the sale.
The following sales have been are expected:
Expected Sales
January $160,000
February $170,000
March $160,000
Budgeted cash collections In March should be budgeted to be:
A. $163,700
B. $158,900
C. $160,480
D. $160,000
Transcribed Image Text:Avril Company makes collections on sales according to the following schedule: 60% in the month of sale. 37% In the month following the sale. 3% in the second month following the sale. The following sales have been are expected: Expected Sales January $160,000 February $170,000 March $160,000 Budgeted cash collections In March should be budgeted to be: A. $163,700 B. $158,900 C. $160,480 D. $160,000
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