Distribution Corporation collects 40 % of a month's sales in the month of sale, 55 % in the month following sale, and 5 % in the second month following sale. Budgeted sales for the upcoming four months are: April budgeted sales $ 140 comma 000 May budgeted sales $ 110 comma 000 June budgeted sales $ 300 comma 000 July budgeted sales $ 210 comma 000 The amount of cash that will be collected in July is budgeted to be

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Business

Leticia

15 November, 08:51

Distribution Corporation collects 40 % of a month's sales in the month of sale, 55 % in the month following sale, and 5 % in the second month following sale. Budgeted sales for the upcoming four months are: April budgeted sales $ 140 comma 000 May budgeted sales $ 110 comma 000 June budgeted sales $ 300 comma 000 July budgeted sales $ 210 comma 000 The amount of cash that will be collected in July is budgeted to be

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Carlos Spears · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

Distribution Corporation collects 40 % of a month's sales in the month of sale, 55 % in the month following sale, and 5 % in the second month following sale.

Budgeted sales for the upcoming four months are:

April = $140,000

May = $110,000

June = $300,000

July = $210,000

Cash collection for July:

July = 210,000*0.4 = 84,000

From June = 300,000*0.55 = 165,000

From May = 110,000*0.05 = 5,500

Total = $254,500