Sheridan Company estimates its sales at 260000 units in the first quarter and that sales will increase by 21000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at

a) $8403731.

b) $6191000.

c) $7455500.

d) $4284500.

Answer rating: 100% (QA)

First quarter sales 260000 Increase in sales per quarter 21000 units Second ... View the full answer