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You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 170 hours in your first month and 340 hours in your second month of business. You charge your customers $17 per hour. You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the amount of cash collections in your second month of business.

You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 170 hours in your first month and 340 hours in your second month of business. You charge your customers $17 per hour. You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the amount of cash collections in your second month of business.

FINANCIAL ACCOUNTING
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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QUESTION 8 You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 170 hours in your first month and 340 hours in your second month of business. You charge your customers $17 per hour. You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the amount of cash collections in your second month of business.
Transcribed Image Text:QUESTION 8 You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 170 hours in your first month and 340 hours in your second month of business. You charge your customers $17 per hour. You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the amount of cash collections in your second month of business.
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