Sheffield Corp. estimates its sales at 200000 units in the first quarter and that sales will increase by 25000 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 $30. 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 $7365000. O $6150000. O $4215000. O $8812500.

Sheffield Corp. estimates its sales at 200000 units in the first quarter and that sales will increase by 25000 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 $30. 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 $7365000. O $6150000. O $4215000. O $8812500.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 4EB: Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February,...

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