Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
A) Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale
A)
Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale.
JanuaryFebruaryMarchApril$ 90,000$ 120,000$ 75,000$ 85,000
Given the sales shown, how much cash will be collected in March and April?
B)
Earthie's Shoes has 55% of its sales in cash and the remaining 45% are credit sales.
Of the credit sales, 70% is collected in the month of sale,
15% is collected the month after the sale,
and 10% is collected the second month after the sale.
How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Expert Solution
| Computation of Cash Collection in March and April: | ||||
| January | February | March | April | |
| Sales | $90,000 | $120,000 | $75,000 | $85,000 |
| 65% of Sales received in Month of Sales | $58,500 | $78,000 | $48,750 | $55,250 |
| 25% of Sales received in Month after Sales | $22,500 | $30,000 | $18,750 | |
| 10% of Sales received in Second Month after Sales | $9,000 | $12,000 | ||
| Total Cash Collection in March and April | $87,750 | $86,000 |
| Computation of Cash Collection in June: | |||
| April | May | June | |
| Sales | $75,000 | $65,000 | $90,000 |
| Cash Sales @55% | $41,250 | $35,750 | $49,500 |
| Credit Sales @45% | $33,750 | $29,250 | $40,500 |
| 70% of Credit Sales collected in Month of Sale | $23,625 | $20,475 | $28,350 |
| 15% of Credit Sales received in Month after Sales | $5,062.50 | $4,387.50 | |
| 10% of Credit Sales received in Second Month after Sales | $3,375 | ||
| Total Cash Collection in June | $85,612.50 | ||
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
