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Mississippi Corp has the following budgeted sales for the first 4 months of next year: Cash Credit Total Sales January $90,000 $350,000 $440,000 February $60,000 $200,000 $260,000 March $50,000 $145,000 $195,000 April $45,000 $130,000 $175,000 The company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale 60% Month after sale 30% Second month after sale 10% The accounts receivable balance on January 1 is $70,000. Of this amount, $60,000 represents uncollected December sales and $10,000 represents uncollected November sales. The total cash collected in January would be.

Mississippi Corp has the following budgeted sales for the first 4 months of next year: Cash Credit Total Sales January $90,000 $350,000 $440,000 February $60,000 $200,000 $260,000 March $50,000 $145,000 $195,000 April $45,000 $130,000 $175,000 The company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale 60% Month after sale 30% Second month after sale 10% The accounts receivable balance on January 1 is $70,000. Of this amount, $60,000 represents uncollected December sales and $10,000 represents uncollected November sales. The total cash collected in January would be.

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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Mississippi Corp has the following budgeted sales for the first 4 months of next year: Cash Credit Total Sales January $90,000 $350,000 $440,000 February $60,000 $200,000 $260,000 March $50,000 $145,000 $195,000 April $45,000 $130,000 $175,000 The company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale 60% Month after sale 30% Second month after sale 10% The accounts receivable balance on January 1 is $70,000. Of this amount, $60,000 represents uncollected December sales and $10,000 represents uncollected November sales. The total cash collected in January would be.
Transcribed Image Text:Mississippi Corp has the following budgeted sales for the first 4 months of next year: Cash Credit Total Sales January $90,000 $350,000 $440,000 February $60,000 $200,000 $260,000 March $50,000 $145,000 $195,000 April $45,000 $130,000 $175,000 The company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale 60% Month after sale 30% Second month after sale 10% The accounts receivable balance on January 1 is $70,000. Of this amount, $60,000 represents uncollected December sales and $10,000 represents uncollected November sales. The total cash collected in January would be.
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