Miggy Co. projects the following monthly revenues for next year: 100,000 500,000 452,000 450,000 250,000 January February July August September 275,000 300,000 March April May October 350,000 400,000 557,000 300,000 November June December 525,000 Miggy's terms are net 30 days. The company typically receives payment on 80% of sales the month following the sale and 17% is collected two months after the sale. Approximately 3% of sales are deemed bad debt. What amount represents the expected cash collection in the second calendar quarter of next year? a. 1,405,54O b. 1,293,630 с. 1,320,540 d. 1,234,250
Miggy Co. projects the following monthly revenues for next year: 100,000 500,000 452,000 450,000 250,000 January February July August September 275,000 300,000 March April May October 350,000 400,000 557,000 300,000 November June December 525,000 Miggy's terms are net 30 days. The company typically receives payment on 80% of sales the month following the sale and 17% is collected two months after the sale. Approximately 3% of sales are deemed bad debt. What amount represents the expected cash collection in the second calendar quarter of next year? a. 1,405,54O b. 1,293,630 с. 1,320,540 d. 1,234,250
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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Question
![Miggy Co. projects the following monthly revenues for next year:
100,000
July
August
September
250,000
January
February
500,000
452,000
450,000
557,000
300,000
275,000
300,000
March
April
May
October
350,000
November
400,000
June
December
525,000
Miggy's terms are net 30 days. The company typically receives payment on 80% of sales the month
following the sale and 17% is collected two months after the sale. Approximately 3% of sales are
deemed bad debt.
What amount represents the expected cash collection in the second calendar quarter of next year?
a. 1,405,540
b. 1,293,630
с. 1,320,540
d. 1,234,250](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9be20b85-fabd-4c32-9fce-cd8103108905%2F59dc8bf1-4adb-4e77-8e9a-540116f90bae%2Fw36grjp_processed.png&w=3840&q=75)
Transcribed Image Text:Miggy Co. projects the following monthly revenues for next year:
100,000
July
August
September
250,000
January
February
500,000
452,000
450,000
557,000
300,000
275,000
300,000
March
April
May
October
350,000
November
400,000
June
December
525,000
Miggy's terms are net 30 days. The company typically receives payment on 80% of sales the month
following the sale and 17% is collected two months after the sale. Approximately 3% of sales are
deemed bad debt.
What amount represents the expected cash collection in the second calendar quarter of next year?
a. 1,405,540
b. 1,293,630
с. 1,320,540
d. 1,234,250
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