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Concord Corporation estimates its sales at 200000 units in the first quarter and that sales will increase by 30000 units for each subsequent quarter during the year. The company has, and desires, an ending finished goods inventory to 25% of the next quarter's sales. Each unit sells for $50. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is collected in the quarter following the sale: Cash collections for the third quarter are budgeted at O $7270000. O $15730000. O $10660000. O $12730000.

Concord Corporation estimates its sales at 200000 units in the first quarter and that sales will increase by 30000 units for each subsequent quarter during the year. The company has, and desires, an ending finished goods inventory to 25% of the next quarter's sales. Each unit sells for $50. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is collected in the quarter following the sale: Cash collections for the third quarter are budgeted at O $7270000. O $15730000. O $10660000. O $12730000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concord Corporation estimates its sales at 200000 units in the first quarter and that sales will increase by 30000 units for each subsequent quarter during the year. The company has, and desires, an ending finished goods inventory to 25% of the next quarter's sales. Each unit sells for $50. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is collected in the quarter following the sale: Cash collections for the third quarter are budgeted at O $7270000. O $15730000. O $10660000. O $12730000.
Transcribed Image Text:Concord Corporation estimates its sales at 200000 units in the first quarter and that sales will increase by 30000 units for each subsequent quarter during the year. The company has, and desires, an ending finished goods inventory to 25% of the next quarter's sales. Each unit sells for $50. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is collected in the quarter following the sale: Cash collections for the third quarter are budgeted at O $7270000. O $15730000. O $10660000. O $12730000.
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