Arizona Co. had the following historical pattern for its credit sales: 30% collected in the month of sale 50% collected in the first month after sale 10% collected in the second month after sale 10% uncollectible after the second month after sale The sales on open account (credit sales) have been budgeted for the last four months of the year as shown below: June $12,000 May $14,000 April $13,000 March $15,000 Required: a. The estimated total cash collections during June is: b. The estimated total cash collections during May is: c. The estimated total cash collections during April is:

Arizona Co. had the following historical pattern for its credit sales: 30% collected in the month of sale 50% collected in the first month after sale 10% collected in the second month after sale 10% uncollectible after the second month after sale The sales on open account (credit sales) have been budgeted for the last four months of the year as shown below: June $12,000 May $14,000 April $13,000 March $15,000 Required: a. The estimated total cash collections during June is: b. The estimated total cash collections during May is: c. The estimated total cash collections during April is:

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 1PROB

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