The LaGrange Corporation had the following budgeted sales for the first half of the current year:JanuaryFebruaryMarchAprilMayJuneCollections on sales:60% in month of sale30% in month following sale10% in second month following saleThe company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:Multiple ChoiceThe accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected Novembersales.оThe total cash collected during January by LaGrange Corporation would be:оOCash Sales Credit Sales$70,000$50,000$40,000$35,000$45,000$40,000$410,000$254,000$340,000$190,000$135,000$344,000$120,000$160,000$140,000$331,500

Total credit sales = Accounts receivable/Uncollected percentage of sales Total cash collected = Cash…

The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales $70,000 $50,000 $40,000 $35,000 $45,000 $40,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: January February March April May June Collections on sales: 60% in month of sale 30% in month following sale 10% in second month following sale Multiple Choice The accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be: O O $410,000 $254,000 $344,000 $340,000 $190,000 $135,000 $331,500 $120,000 $160,000 $140,000

The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales $70,000 $50,000 $40,000 $35,000 $45,000 $40,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: January February March April May June Collections on sales: 60% in month of sale 30% in month following sale 10% in second month following sale Multiple Choice The accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be: O O $410,000 $254,000 $344,000 $340,000 $190,000 $135,000 $331,500 $120,000 $160,000 $140,000

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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