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Information pertaining to Collection Corporation's sales revenue is presented below: December $ 132,000 457,000 $ 589,000 Cash sales Credit sales Total sales Multiple Choice Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted cash collections in January by Collection Corporation are: O $572.248 O $388,936. O O O $437,464. $480,519. November $ 103,000 295,000 $ 398,000 $521,244 January $ 85,000 241,000 $ 326,000

Information pertaining to Collection Corporation's sales revenue is presented below: December $ 132,000 457,000 $ 589,000 Cash sales Credit sales Total sales Multiple Choice Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted cash collections in January by Collection Corporation are: O $572.248 O $388,936. O O O $437,464. $480,519. November $ 103,000 295,000 $ 398,000 $521,244 January $ 85,000 241,000 $ 326,000

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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Information pertaining to Collection Corporation's sales revenue is presented below: Cash sales Credit sales Total sales Multiple Choice O $572,248. Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted cash collections in January by Collection Corporation are: O O O $388,936. $437,464 $480,519. November $ 103,000 295,000 $ 398,000 $521,244. December $ 132,000 457,000 $ 589,000 January $ 85,000 241,000 $ 326,000
Transcribed Image Text:Information pertaining to Collection Corporation's sales revenue is presented below: Cash sales Credit sales Total sales Multiple Choice O $572,248. Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted cash collections in January by Collection Corporation are: O O O $388,936. $437,464 $480,519. November $ 103,000 295,000 $ 398,000 $521,244. December $ 132,000 457,000 $ 589,000 January $ 85,000 241,000 $ 326,000
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