Information pertaining to Collection Corporation's sales revenue is presented below: November December January Cash sales $ 99,000 $ 128,000 $ 81,000 Credit sales 291,000 453,000 237,000 Total sales $ 390,000 $ 581,000 $ 318,000 Management estimates that 3% of credit sales are eventually uncollectible. Of the collectible credit sales, 60% 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; 20% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 50% of the selling prices. Budgeted cash payments in December for November inventory purchases by Collection Corporation are: Multiple Choice $42,075. $53,325. $78,000. $156,000. $213,300. Please don't provide answer in image format thank you
Information pertaining to Collection Corporation's sales revenue is presented below: November December January Cash sales $ 99,000 $ 128,000 $ 81,000 Credit sales 291,000 453,000 237,000 Total sales $ 390,000 $ 581,000 $ 318,000 Management estimates that 3% of credit sales are eventually uncollectible. Of the collectible credit sales, 60% 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; 20% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 50% of the selling prices. Budgeted cash payments in December for November inventory purchases by Collection Corporation are: Multiple Choice $42,075. $53,325. $78,000. $156,000. $213,300. Please don't provide answer in image format thank you
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Information pertaining to Collection Corporation's sales revenue is presented below:
| November | December | January | |
|---|---|---|---|
| Cash sales | $ 99,000 | $ 128,000 | $ 81,000 |
| Credit sales | 291,000 | 453,000 | 237,000 |
| Total sales | $ 390,000 | $ 581,000 | $ 318,000 |
Management estimates that 3% of credit sales are eventually uncollectible. Of the collectible credit sales, 60% 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; 20% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 50% of the selling prices.
Budgeted cash payments in December for November inventory purchases by Collection Corporation are:
Multiple Choice
-
$42,075.
-
$53,325.
-
$78,000.
-
$156,000.
-
$213,300.
Please don't provide answer in image format thank you
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