cash receipts
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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Question
Capital Budgeting
1. Knight Company has found that 30% of its sales are collected in the month of the sale
and the remainder of the sales are collected in the next month. If sales are expected to be
$100,000 in April, $120,000 in May, and $80,000 in June, what is the estimated amount
of cash receipts for May?
A. $114,000
B. $106,000
C. $92,000
D. $108,000
2. In recent years, Princess Company has collected 20% of its sales in the month of the sale
and the other 80% in the following month. During the first three months of 2002,
Princess is anticipating sales of $350,000; $403,000; and $389,000, respectively. What is
the amount of
A. $301,200
B. $360,600
C. $400,200
D. $391,800
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