Memphis company anticipates total total sales for April, May and June of 910000, 1010000 and $1060000 respectively. Cash sales are normally 20% of total sales. Of the credit sales 40% are collected in the same month as the sale and 55% are collected during the first month after the sale and the remaining 5% are not collected. Compute the amount of cash received for May.
Memphis company anticipates total total sales for April, May and June of 910000, 1010000 and $1060000 respectively. Cash sales are normally 20% of total sales. Of the credit sales 40% are collected in the same month as the sale and 55% are collected during the first month after the sale and the remaining 5% are not collected. Compute the amount of cash received for May.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikram
Transcribed Image Text:Memphis company anticipates total total sales for April, May and June of 910000, 1010000 and $1060000 respectively.
Cash sales are normally 20% of total sales. Of the credit sales 40% are collected in the same month as the sale and 55%
are collected during the first month after the sale and the remaining 5% are not collected. Compute the amount of cash
received for May.
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