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Zhang Industries sells a product for $600. Unit sales for May were 500 and each month's sales are expected to exceed the prior month's results by 2%. Zhang pays a sales manager a monthly salary of $4,500 and a commission of 1% of sales in dollars. Assume 35% of Zhang's sales are for cash. The remaining 65% are credit sales; these customers pay in the month following the sale. Compute the budgeted cash receipts for June. a. 300,000 b. 302,100 c. 195,000 d. 198,900 e. 306,645

Zhang Industries sells a product for $600. Unit sales for May were 500 and each month's sales are expected to exceed the prior month's results by 2%. Zhang pays a sales manager a monthly salary of $4,500 and a commission of 1% of sales in dollars. Assume 35% of Zhang's sales are for cash. The remaining 65% are credit sales; these customers pay in the month following the sale. Compute the budgeted cash receipts for June. a. 300,000 b. 302,100 c. 195,000 d. 198,900 e. 306,645

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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Zhang Industries sells a product for $600. Unit sales for May were 500 and each month's sales are expected to exceed the prior month's results by 2%. Zhang pays a sales manager a monthly salary of $4,500 and a commission of 1% of sales in dollars. Assume 35% of Zhang's sales are for cash. The remaining 65% are credit sales; these customers pay in the month following the sale. Compute the budgeted cash receipts for June. a. 300,000 b. 302,100 c. 195,000 d. 198,900 e. 306,645
Transcribed Image Text:Zhang Industries sells a product for $600. Unit sales for May were 500 and each month's sales are expected to exceed the prior month's results by 2%. Zhang pays a sales manager a monthly salary of $4,500 and a commission of 1% of sales in dollars. Assume 35% of Zhang's sales are for cash. The remaining 65% are credit sales; these customers pay in the month following the sale. Compute the budgeted cash receipts for June. a. 300,000 b. 302,100 c. 195,000 d. 198,900 e. 306,645
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