Tim Tam Inc., a merchandising company, is considering opening a new distribution center on July 1, 20Y1. Budgeted sales for July, August and September are estimated to be $200,000, $300,000, and $450,000, respectively. The company expects to sell 30% of its merchandise for cash and the remainder on account. Of the sales on account, 60% are expected to be collected in the month of the sale and 40% in the month following the sale. Determine the expected cash collection in September. Group of answer choices $90,000 $408,000 $356,000 $126,000
Tim Tam Inc., a merchandising company, is considering opening a new distribution center on July 1, 20Y1. Budgeted sales for July, August and September are estimated to be $200,000, $300,000, and $450,000, respectively. The company expects to sell 30% of its merchandise for cash and the remainder on account. Of the sales on account, 60% are expected to be collected in the month of the sale and 40% in the month following the sale. Determine the expected cash collection in September. Group of answer choices $90,000 $408,000 $356,000 $126,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Tim Tam Inc., a merchandising company, is considering opening a new distribution center on July 1, 20Y1. Budgeted sales for July, August and September are estimated to be $200,000, $300,000, and $450,000, respectively. The company expects to sell 30% of its merchandise for cash and the remainder on account. Of the sales on account, 60% are expected to be collected in the month of the sale and 40% in the month following the sale.
Determine the expected cash collection in September.
Group of answer choices
$90,000
$408,000
$356,000
$126,000
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