Cobra Company provided you with the following sales forecast for the first four months of the coming year: January February March April Sales value R300 000 R360 000 R280 000 R240 000 Additional information: 80% of sales are on credit. 50% of credit sales are paid in the month of sale. 30% of credit sales are collected in the month following the month of sale, and the remainder is collected in the second month following the month of sale. There are no bad debts. Required: Calculate the following and choose the correct answer from the options provided: total cash receipts for March total collection from customers for April

Cobra Company provided you with the following sales forecast for the first four months of the coming year: January February March April Sales value R300 000 R360 000 R280 000 R240 000 Additional information: 80% of sales are on credit. 50% of credit sales are paid in the month of sale. 30% of credit sales are collected in the month following the month of sale, and the remainder is collected in the second month following the month of sale. There are no bad debts. Required: Calculate the following and choose the correct answer from the options provided: total cash receipts for March total collection from customers for April

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14EA: Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is...

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Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
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