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Cherokee Company had an accounts receivable balance of $16,000 on December 31, 2013. Projected sales for the first three months

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Cherokee Company had an accounts receivable balance of $16,000 on December 31, 2013. Projected sales for the first three months of 2014 are:

January

$120,000

February

130,000

March

100,000

All sales are credit sales. Cherokee Company usually collects 40% of its sales during the month of sale, 50% in the month following the sale, and 10% in the second month following the sale.

Given the information above, cash collections during March should be?

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Answer rating: 100% (QA)

Preparation of Budget Cash collections for Cherokee Company Particulars Sa View the full answer


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Related Book For  answer-question
Foundations of Finance The Logic and Practice of Financial Management

Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Posted Date: December 28, 2022 03:29:50
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