Use the information below for Nuthatch Corporation to answer the question that follow. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business-September, October, and November are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in November from accounts receivable are projected to be a.$316,400 b.$295,200 c.$276,500 d.$280,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Use the information below for
Nuthatch Corporation to answer the
question that follow. Nuthatch
Corporation began its operations on
September 1 of the current year.
Budgeted sales for the first three
months of business-September,
October, and November are $260,000,
$375,000, and $400,000, respectively.
The company expects to sell 30% of its
merchandise for cash. Of sales on
account, 80% are expected to be
collected in the month of the sale and
20% in the month following the sale.
The cash collections expected in
November from accounts receivable
are projected to be
a.$316,400
b.$295,200
c.$276,500
d.$280,000
Transcribed Image Text:Use the information below for Nuthatch Corporation to answer the question that follow. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business-September, October, and November are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in November from accounts receivable are projected to be a.$316,400 b.$295,200 c.$276,500 d.$280,000
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