The Mason Corp. collects cash from sales according to the following schedule: 1. 35% in the month of sale 2. 55% in the month following the sale 3. 10% in the second month following the sale Expected Sales: Sales Month July $110,000 August $120,000 September $130,000 What are the budgeted cash collections for September?

The Mason Corp. collects cash from sales according to the following schedule: 1. 35% in the month of sale 2. 55% in the month following the sale 3. 10% in the second month following the sale Expected Sales: Sales Month July $110,000 August $120,000 September $130,000 What are the budgeted cash collections for September?

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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A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase and 60% in the month following the purchase. If purchases are budgeted to be 40,000 for August and 36,000 for September, what are the budgeted cash payments for purchases on account for September?
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