Rhody Co. makes bracelets. The company's sales budget for the first six months is given below:Q1 Q2JanuaryFebruaryMarchAprilMayJune50,000100,000200,000200,000400,000300,000From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 50% are collected in the month following sale, and the remaining 25 % are collected in the second month following sale. Bad debts are negliable and can be ignored. How much does this company expect to collect in his second quarter?

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Asked Apr 1, 2019
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Rhody Co. makes bracelets. The company's sales budget for the first six months is given below:

Q1  Q2
January February March April May June
50,000 100,000 200,000 200,000 400,000 300,000

From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 50% are collected in the month following sale, and the remaining 25 % are collected in the second month following sale. Bad debts are negliable and can be ignored. 

How much does this company expect to collect in his second quarter? 

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Expert Answer

Step 1

Assume Q1 = Jan, Feb, March

Assume Q2 = Apr, May, June

Step 2

The total collection in second qua...

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