The Professional Service Company expects 80% of sales for cash and 20% on credit. The company collects
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Question:
The Professional Service Company expects 80% of sales for cash and 20% on credit. The company collects 70% of its credit sales in the month following sale, 25% in the second month following sale, and 5% are not collected (that is, they are "bad debts"). Expected sales for June, July, and August are $64,000, $70,000, and $60,000, respectively. What are the company's expected total cash receipts in August?
Multiple Choice
$61,000.
- $77,000.
- $121,200.
- $65,000.
- $13,000.
Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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