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nexus9112 [7]
3 years ago
8

Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business

are $249,000, $304,000, and $410,000, respectively, for September, October, and November. The company expects to sell 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale and 30% in the month following the sale. The cash collections in November are a.$215,250 b.$463,380 c.$386,150 d.$102,500
Business
2 answers:
Vsevolod [243]3 years ago
6 0

Answer:

c) $386,150

Explanation:                                                                             $

<em>Cash sales </em>(25%) = 25% × 410,000                             =   102,500

<em>Sales on Account:</em>

70% month of sale = 70% * (100-25)% × $410,000     = 215,250

30% month after sale = 30% × (100-25%) × $304,000 =  <u>68,400 </u>

Total cash collection for Nov.                                       <u>  386,150</u><u> </u>

Total cash collection for November:  

=102,500 + 215,250 + 68,400

= $386,150

Fudgin [204]3 years ago
4 0

Answer:

The Cash Collections in the month of November are c. $386,150.

Explanation:

Months                            September             October           November

Sales                                $249,000             $304,000          $410,000

Cash Collected (25%)         62,250                  76,000             102,500

⇒ Sales on Account       $186,750             $228,000         $307,500

Collections of Rec.

Last Month (30%)                                                                         68,400                                              

Current Month (70%)                                                                  215,250

Total Collections                                                                      $386,150

Workings for November:

Last Month Collection = 228,000 * .3 = 68,400

Current Month Collection = 307,500 * .7 = 215,250

Total Collections = 68,300 + 215,250 + 102,500 = $386,150.

I hope the format and alignment remain the same. Thanks!

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Note: While answering this question, there is a confusion as to whether the correct demand equation is p= 157 − x2 as it appears in the question, or p= 157 − x^2 which is suspected to be the correct equation. Whichever the case may be, answers are provided for the two equations. Just confirm from the original question or your teacher which one is correct and pick the relevant answer out of the two following answers:

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