Seaside Co. has $350,000 in accounts receivable on February 1. Budgeted sales for February are $1,200,000. Seaside Co. expects to sell 25% of its merchandise for cash. Of the remaining 75% of sales on account, 70% are expected to be collected in the month of sale, and the remainder the following month. What are the February cash collections from sales? a. $1,415,000 b. $950,000 c. $1,280,000 d. $1,520,000
Seaside Co. has $350,000 in accounts receivable on February 1. Budgeted sales for February are $1,200,000. Seaside Co. expects to sell 25% of its merchandise for cash. Of the remaining 75% of sales on account, 70% are expected to be collected in the month of sale, and the remainder the following month. What are the February cash collections from sales? a. $1,415,000 b. $950,000 c. $1,280,000 d. $1,520,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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What are the February cash collections from sales on these financial accounting question?

Transcribed Image Text:Seaside Co. has $350,000 in accounts receivable on February 1.
Budgeted sales for February are $1,200,000. Seaside Co. expects to
sell 25% of its merchandise for cash. Of the remaining 75% of sales on
account, 70% are expected to be collected in the month of sale, and the
remainder the following month. What are the February cash collections
from sales?
a. $1,415,000
b. $950,000
c. $1,280,000
d. $1,520,000
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