Sioux Corporation is estimating the following sales for the first four months of next year: January........ $260,000 February...... $230,000 March.......... $270,000 April............. $320,000 Sales are normally collected 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?
Sioux Corporation is estimating the following sales for the first four months of next year: January........ $260,000 February...... $230,000 March.......... $270,000 April............. $320,000 Sales are normally collected 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?
Chapter7: Budgeting
Section: Chapter Questions
Problem 9EB: Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25%...
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Question
Sioux Corporation is estimating the following sales for the first four months of next year:
|
January........ |
$260,000 |
|
February...... |
$230,000 |
|
March.......... |
$270,000 |
|
April............. |
$320,000 |
Sales are normally collected 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?
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