Tyler Corp has the following budgeted sales for the first 4 months of next year: January $80,000 $350,000 February $60,000 $200,000 March April $45,000 $130,000 Cash sales $50,000 Credit sales $145,000 Total sales $430,000 $260,000 $195,000 $175,000 The Company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale 60% Month after sale 30% 2nd month after sale 10% The accounts receivable balance on January 1 is: Of this amount, $132,000 represents uncollected December sales and $23,000 represents uncollected November $155,000 sales. 12 The total cash collected in January would be: $412,000 А. В. $445,000 с. $389,000 $346,000 E. None of the above D.

Tyler Corp has the following budgeted sales for the first 4 months of next year: January $80,000 $350,000 February $60,000 $200,000 March April $45,000 $130,000 Cash sales $50,000 Credit sales $145,000 Total sales $430,000 $260,000 $195,000 $175,000 The Company is in the process of preparing a cash budget and must determine the expected cash collections. Accordingly, the following information has been assembled: Collections on credit sales: Month of sale 60% Month after sale 30% 2nd month after sale 10% The accounts receivable balance on January 1 is: Of this amount, $132,000 represents uncollected December sales and $23,000 represents uncollected November $155,000 sales. 12 The total cash collected in January would be: $412,000 А. В. $445,000 с. $389,000 $346,000 E. None of the above D.

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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