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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