Company is trying to budget how much cash it should receive in the month of...
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Company is trying to budget how much cash it should receive in the month of March related to its sales. The below table lists the expected sales in January - May.
Month
Sales
January
$510,000
February
$430,000
March
$200,000
April
$830,000
May
$980,000
Of the sales, 60% are paid with cash. The remaining 40% of the sales are recorded as accounts receivables. The company typically collects the 90% of the cash related to the accounts receivables in the month following the sale and 10% in two months following the sale.
How much total cash does the company budget to receive in March?
Company is trying to budget how much cash it should receive in the month of March related to its sales. The below table lists the expected sales in January - May.
Month | Sales |
January | $510,000 |
February | $430,000 |
March | $200,000 |
April | $830,000 |
May | $980,000 |
Of the sales, 60% are paid with cash. The remaining 40% of the sales are recorded as accounts receivables. The company typically collects the 90% of the cash related to the accounts receivables in the month following the sale and 10% in two months following the sale.
How much total cash does the company budget to receive in March?
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