Consider the following information for a given company. Month Cash Sales Credit Sales Jan $80.000 $350,000 Feb S60.000 $200,000 Mar $5000 $145,000 Apr $45,000 $130,000 May $55000 $170,000 Jun $5000 $150,000 The firm's collection pattern is as follows: 60% in the month of sale 30% one month following sale 10% two months following sale The accounts receivable balance on 1 Jan is $70.000.Of this amount, $60.000 represents uncollected Dec sales and $10.000 represents uncollected Nov sales. Required: Determine the total cash collected during Jan.

Consider the following information for a given company. Month Cash Sales Credit Sales Jan $80.000 $350,000 Feb S60.000 $200,000 Mar $5000 $145,000 Apr $45,000 $130,000 May $55000 $170,000 Jun $5000 $150,000 The firm's collection pattern is as follows: 60% in the month of sale 30% one month following sale 10% two months following sale The accounts receivable balance on 1 Jan is $70.000.Of this amount, $60.000 represents uncollected Dec sales and $10.000 represents uncollected Nov sales. Required: Determine the total cash collected during Jan.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 2PROB

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