Jazzy Janitors has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed. During December 2013, Jazzy Janitors’ invoiced $200,000 to clients. Projected revenues for the first six months of 2014 are given below:                                   Month                      Revenue January                     $180,000 February                     215,000 March                         220,000 April                           218,000 May                            240,000 June                            255,000 What are the expected cash receipts for April, 2014?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jazzy Janitors has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed. During December 2013, Jazzy Janitors’ invoiced $200,000 to clients. Projected revenues for the first six months of 2014 are given below:

                                  Month                      Revenue

January                     $180,000

February                     215,000

March                         220,000

April                           218,000

May                            240,000

June                            255,000

What are the expected cash receipts for April, 2014?

 

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