A city is preparing its cash forecast for the month
A city is preparing its cash forecast for the month of May. Using the following information, compute the estimated cash receipts from sales tax collections in May.
Sales tax rate 5%
Estimated retail sales in May......... $ 2,000,000
Actual retail sales in April ......... $ 1,500,000
Estimated percentage of May sales resulting in sales taxes remitted by merchants to city in May .................... 20%
Estimated percentage of April sales resulting in sales taxes remitted by merchants to city in May .................... 70%

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help