The LaGrange Corporation had the following budgeted sales for the first half of the current year Cash Credit Sales Sales $20,000 $120,000 $25,000 $14o,000 $37,000 $100e,000 $32,000 $117,000 $42,000 $17e,000 $50,000 $110,e00 January February March April May June The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled Collections on sales: 55% in month of sale 35% in month following sale 10% in second month following sale The accounts receivable balance on January 1 of the current year was $71,000, of which $54,000 represents uncollected December sales and $17,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be:

The LaGrange Corporation had the following budgeted sales for the first half of the current year Cash Credit Sales Sales $20,000 $120,000 $25,000 $14o,000 $37,000 $100e,000 $32,000 $117,000 $42,000 $17e,000 $50,000 $110,e00 January February March April May June The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled Collections on sales: 55% in month of sale 35% in month following sale 10% in second month following sale The accounts receivable balance on January 1 of the current year was $71,000, of which $54,000 represents uncollected December sales and $17,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be:

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 3E

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