Sunland, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: MarchAprilMayJuneJulyBudgeted sales$299200$289800$321000$280300$209700Budgeted purchases$144500$119700$128000$132700$89400• Customer amounts on account are collected 60% in the month of sale and 40% in the following month.• Cost of goods sold is 70% of sales.• Sunland purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month.• Operating expenses are: Salaries, $51000; Depreciation, $12000; Rent, $14400; and Utilities, $14800.• Accounts payable is used only for inventory acquisitions.How much cash will Sunland receive during May from customers?$304720$192600$302280$308520

Cash received would be calculated by multiplying the percentage of cash received by the budgeted…

Answered: Sunland, Inc. reports all its sales on…

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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Sunland, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are:

	March	April	May	June	July
Budgeted sales	$299200	$289800	$321000	$280300	$209700
Budgeted purchases	$144500	$119700	$128000	$132700	$89400

•	Customer amounts on account are collected 60% in the month of sale and 40% in the following month.
•	Cost of goods sold is 70% of sales.
•	Sunland purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month.
•	Operating expenses are: Salaries, $51000; Depreciation, $12000; Rent, $14400; and Utilities, $14800.
•	Accounts payable is used only for inventory acquisitions.

How much cash will Sunland receive during May from customers?

$304720

$192600

$302280

$308520

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