The table contains the Sales estimates for the next year. Sales are collected as follows:In the month of Sales: 43%In the next month: 23%After 2 months: 14%After 3 months: remainder is collected What is the cash collection for November? Month Sales $ Month Sales $ Jan 28,555 July 36,215 Feb 21,027 Aug 19,907 Mar 19,907 Sep 28,555 Apr 36,215 Oct 19,907 May 28,555 Nov 21,027 June 21,027 Dec 36,215

The table contains the Sales estimates for the next year. Sales are collected as follows:In the month of Sales: 43%In the next month: 23%After 2 months: 14%After 3 months: remainder is collected What is the cash collection for November? Month Sales $ Month Sales $ Jan 28,555 July 36,215 Feb 21,027 Aug 19,907 Mar 19,907 Sep 28,555 Apr 36,215 Oct 19,907 May 28,555 Nov 21,027 June 21,027 Dec 36,215

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9EB: Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25%...

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

100%

The table contains the Sales estimates for the next year.

Sales are collected as follows:
In the month of Sales: 43%
In the next month: 23%
After 2 months: 14%
After 3 months: remainder is collected

What is the cash collection for November?

Month	Sales $	Month	Sales $
Jan	28,555	July	36,215
Feb	21,027	Aug	19,907
Mar	19,907	Sep	28,555
Apr	36,215	Oct	19,907
May	28,555	Nov	21,027
June	21,027	Dec	36,215

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