Willow Inc. has $310,000 in accounts receivable on February 1. Budgeted sales for February are $1,050,000. Willow Inc. expects to sell 25% of its merchandise for cash. Of the remaining 75% of sales on account, 80% are expected to be collected in the month of sale and the remainder the following month. The February cash collections from sales are: a. $1,202,500 b. $840,000 c. $1,090,000 d. $1,400,000
Willow Inc. has $310,000 in accounts receivable on February 1. Budgeted sales for February are $1,050,000. Willow Inc. expects to sell 25% of its merchandise for cash. Of the remaining 75% of sales on account, 80% are expected to be collected in the month of sale and the remainder the following month. The February cash collections from sales are: a. $1,202,500 b. $840,000 c. $1,090,000 d. $1,400,000
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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Willow Inc. has $310,000 in accounts receivable on February 1. Budgeted sales for February are $1,050,000. Willow Inc. expects to sell 25% of its merchandise for cash. Of the remaining 75% of sales on account, 80% are expected to be collected in the month of sale and the remainder the following month. The February cash collections from sales are: a. $1,202,500 b. $840,000 c. $1,090,000 d. $1,400,000
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