Ask Question
6 June, 14:48

Company XYZ has the following sales budget for the last six months of 2018. July $100,000 August $75,000 September $100,000 October $70,000 November $110,000 December $94,000 Historically, the cash collection of sales has been as follows: 60% of sales collected in month of sales 20% of sales collected in month following sale 7% of sales collected in second month following sale 2% of sales uncollectible What are the expected cash collections of sales in October

+5
Answers (1)
  1. 6 June, 16:54
    0
    Answer: $67,250

    Explanation:

    Sales budget : July $100,000, August $75,000, September $100,000, October $70,000, November $110,000, December $94,000

    What are the expected cash collections of sales in October

    From the question, cash collection of sales has been as follows: 60% of sales collected in month of sales 20% of sales collected in month following sale 7% of sales collected in second month following sale 2% of sales uncollectible

    Sales: 75,000 100,000 70,000

    August. 45,000.

    September 15,000 60000

    October 5,250. 20,000 42,000

    Total collected in October is 5250+20000+42,000 = 67,250
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Company XYZ has the following sales budget for the last six months of 2018. July $100,000 August $75,000 September $100,000 October $70,000 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers