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Helga [31]
3 years ago
9

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

are $243,000, $300,000, and $430,000, 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 expected in October are:_______
Business
1 answer:
sweet [91]3 years ago
7 0

Answer:

Total= $129,675

Explanation:

Giving the following information:

Budgeted sales:

September= 243,000

October= 300,000

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.

Cash for October:

Cash from October= 300,000*0.25= 75,000

Cash from September= (243,000*0.75)*0.30= 54,675

Total= $129,675

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