accounting home work

elenaj · #1 May 4, 2008, 04:38 PM

July $100,000 October $ 90,000
August $ 80,000 November $100,000
September $110,000 December $ 94,000
Historically, cash collection of sales has been:
65% of sales collected in month of sale
25% of sales collected in month following sale
10% of sales collected in second month following sale

1. What are the expected cash collections in September?
A. $86,000 C. $98,500
B. $97,100 D. $101,500

I got 97.100 if this is incorrect, can somebody help me to solve this problem...thanks

CaptainForest · May 4, 2008, 05:26 PM

Cash Collections in September:
July = 10% x 100,000
August = 25% x 80,000
September = 65% of 110,000

Total = 101,500



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!