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    robynp8's Avatar
    robynp8 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 5, 2008, 09:27 AM
    Cash collections
    All sales at Meeks Company, a wholesaler, are made on credit. Experience has shown that 70% of the accounts receivable are collected in the month of the sale, 26% are collected in the month following the sale, and the remaining 4% are uncollectible. Actual sales for March and budgeted sales for April and May are given below:

    March (actual sales) $200,000
    April $300,000
    May $500,000

    Required:
    Compute the amount of cash, in total, which the company can expect to collect in May.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Dec 9, 2008, 11:32 AM

    In May you will collect April Sales*26% + May sales*70%
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