sunnyveedelight
Nov 8, 2012, 02:48 PM
Budgeted Sales:
April $300,000
May $360,000
June $380,000
The company expects to sell about 10% of its merchandise for cash in the month of sale. The other 90% of sales are to be collected in the following amounts: 0% in the month of sale; 70% in the first month after sale and 30% in the second month after sale.
Current Assets as April 1st include cash of $40,000, Marketable Securities of $65,000 and Accounts Receivable of $370,000 ($280,000 of March Sales uncollected and $90,000 of February Sales uncollected)
Please help advice!!
April $300,000
May $360,000
June $380,000
The company expects to sell about 10% of its merchandise for cash in the month of sale. The other 90% of sales are to be collected in the following amounts: 0% in the month of sale; 70% in the first month after sale and 30% in the second month after sale.
Current Assets as April 1st include cash of $40,000, Marketable Securities of $65,000 and Accounts Receivable of $370,000 ($280,000 of March Sales uncollected and $90,000 of February Sales uncollected)
Please help advice!!