Distribution Corporation collects 40% of a month's sales in the month of sale, 55% in the month following sale, and 5% in the second month following sale. Budgeted sales for the upcoming four months are: April budgeted sales $70,000 May budgeted sales $130,000 June budgeted sales $210,000 July budgeted sales $240,000 The amount of cash that will be collected in July is budgeted to be: A. $179,500 B. $218,000 C. $122,000 D. $96,000

Distribution Corporation collects 40% of a month's sales in the month of sale, 55% in the month following sale, and 5% in the second month following sale. Budgeted sales for the upcoming four months are: April budgeted sales $70,000 May budgeted sales $130,000 June budgeted sales $210,000 July budgeted sales $240,000 The amount of cash that will be collected in July is budgeted to be: A. $179,500 B. $218,000 C. $122,000 D. $96,000

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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