Concord Corporation estimates its sales at 200000 units in the first quarter and that sales will increase by 30000 units for each subsequent quarter during the year. The company has, and desires, an ending finished goods inventory to 25% of the next quarter's sales. Each unit sells for $50. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is collected in the quarter following the sale: Cash collections for the third quarter are budgeted at O $7270000. O $15730000. O $10660000. O $12730000.

Concord Corporation estimates its sales at 200000 units in the first quarter and that sales will increase by 30000 units for each subsequent quarter during the year. The company has, and desires, an ending finished goods inventory to 25% of the next quarter's sales. Each unit sells for $50. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is collected in the quarter following the sale: Cash collections for the third quarter are budgeted at O $7270000. O $15730000. O $10660000. O $12730000.

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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