Pardee Company makes 30% of its sales in cash and 70% on account. 60% of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Sales Month 1 $65,000 Sales Month 2 $70,000 Sales Month 3 $50,000 Sales Month 4 $30,000 Total cash receipts in Month 4 will be: a. $38,000. b. $47,900. c. $27,230. d. $36,230.
Pardee Company makes 30% of its sales in cash and 70% on account. 60% of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Sales Month 1 $65,000 Sales Month 2 $70,000 Sales Month 3 $50,000 Sales Month 4 $30,000 Total cash receipts in Month 4 will be: a. $38,000. b. $47,900. c. $27,230. d. $36,230.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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