Bright Electronics Corporation produces and sells one product. The budgeted selling price per unit is $96. Budgeted unit sales for September, October, November, and December are 9,600, 11,200, 13,000, and 14,400 units, respectively. All sales are on credit with 35% collected in the month of the sale and 65% in the following month. What are the expected cash collections for October?

Bright Electronics Corporation produces and sells one product. The budgeted selling price per unit is $96. Budgeted unit sales for September, October, November, and December are 9,600, 11,200, 13,000, and 14,400 units, respectively. All sales are on credit with 35% collected in the month of the sale and 65% in the following month. What are the expected cash collections for October?

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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A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
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