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Hampshire Clinic in Manchester, England, prepared the following sales budget for the first 6 months. January February March April May June Sales units 6,000
Hampshire Clinic in Manchester, England, prepared the following sales budget for the first 6 months. January February March April May June Sales units 6,000 7,000 7,500 8,500 7,800 8,300 Sales are 20 each. Twenty percent of sales is for cash, and the remainder is on account. The firm forecasts the collection of sales on account to be 60% in the month of sale, with the remainder collected in the next month. Beginning receivables on January 1 is 40,000. If more customers use credit cards, causing cash sales to increase to 40% of total sales, by how much is cash increased in the second quarter, rounded to zero decimals?
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January sales 6000 units 20 per unit 120000 Cash sales 20 of 120000 24000 Credit sales 120000 24000 ...Get Instant Access to Expert-Tailored Solutions
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