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Question: Apex Corporation has actual sales of $75,000 in March and $62,000 in April. It expects sales of $80,000 in May, $105,000 in June, and $105,000 in July. Assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following two months, what are the firm's expected cash receipts for May, June, and July?

Question: Apex Corporation has actual sales of $75,000 in March and $62,000 in April. It expects sales of $80,000 in May, $105,000 in June, and $105,000 in July. Assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following two months, what are the firm's expected cash receipts for May, June, and July?

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 5MC
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Question: Apex Corporation has actual sales of $75,000 in March and $62,000 in April. It expects sales of $80,000 in May, $105,000 in June, and $105,000 in July. Assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following two months, what are the firm's expected cash receipts for May, June, and July?
Transcribed Image Text:Question: Apex Corporation has actual sales of $75,000 in March and $62,000 in April. It expects sales of $80,000 in May, $105,000 in June, and $105,000 in July. Assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following two months, what are the firm's expected cash receipts for May, June, and July?
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