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Natalka [10]
2 years ago
5

dit sales of $42,000 and $68,000, respectively. The company expects to collect 60% of its credit sales in the month of the sale,

35% in the following month, and 5% is deemed uncollectible. What amount of cash collections from credit sales would the company include in its cash budget for the second month
Business
2 answers:
blagie [28]2 years ago
8 0

Answer:

cash collections from credit sales that the company will include in its cash budget for the second month is $55,500

Explanation:

Second Month Cash Collections will include the following Cash flows:

(1) 60% of the 2nd month`s sales

(2) 35 % of the 1st month`s sales

<u>Therefore cash collections from credit sales :</u>

(1) 60% of the 2nd month`s sales ( $68,000×60%)  = $40,800

(2) 35 % of the 1st month`s sales ( $42,000× 35 %) = $14,700

Total cash collections                                                = $55,500

gogolik [260]2 years ago
8 0

Answer:

Amount of cash collections from credit sales would the company include in its cash budget for the second month is $55,500

Explanation:

The amount of cash collections from credit sales in the second month = 60% x credit sales in the second month + 35% x credit sales in the first month.

The company has credit sales in the first and the second month of of $42,000 and $68,000, respectively.

The amount of cash collections from credit sales in the second month = 60% x $68,000 + $42,000 x 35% = $55,500

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kupik [55]

Answer:

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Explanation:

Given that

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The accounting equation equals to

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8 0
3 years ago
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telo118 [61]

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When any company wants to sale their product without prior knowledge of the market then it's a disaster.

First thing Jack can do is "Test Marketing". If any company has no knowledge of market then fastest way to know your market is test marketing. Jack must put his sweaters in small quantity for sale at different locations. Test marketing needs to be done for whole week. Jack needs to collect the feedback from its customers too. Feedback is the way jack can know the market. Without knowing the market and customers, it's really hard to market or sale your product. Feedback from test marketing activity will actually give him market knowledge and customer's feedback.

6 0
3 years ago
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svlad2 [7]

Answer:

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Explanation:

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3 years ago
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7 0
3 years ago
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Damon Co. purchased 100% of the outstanding common stock of Smith Co. in an acquisition by issuing 20,000 shares of its $1 par c
Tamiku [17]

Answer: the correct answer is $70000

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