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Natalka [10]
3 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]3 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]3 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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3 years ago
The percent change in multifactor productivity if Fok can reduce the energy bill by ​$1,000 per day without cutting production o
marishachu [46]

Answer:

The answer is "2.45%".

Explanation:

The answer of option c:

Reduce power by 950 dollars:

In this question it will need to once again take the latest energy cost for analytical hierarchical productivity.  

→ Total Input  = 400 \times  12+21000 \times 1 +(5000-950)+10000

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Consumer rates  = \frac{1,000}{39,850}

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\to \text{percentage  changes} = \frac{\text{New Multi Factor Productivity - Previous Multi-Factor Productivity}}{\text{Originbal Multi-Factor Productivity}}  

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3 0
3 years ago
Eat at State is considering buying a new food truck. It will cost $65,000, but is expected to generate $20,000 in sales over the
Afina-wow [57]

Answer:

It is not advisable to buy the food truck, since over the 4 years of investment it will show a loss of $ 40,000.

Explanation:

Since Eat at State is considering buying a new food truck, and it will cost $ 65,000, but is expected to generate $ 20,000 in sales over the next 4 years, and at the end of the 4th year, the truck will be sold to Eat Like a Wolverine in Ann Arbor for $ 10,000 (after taxes), and it will require $ 5,000 in additional Net Working capital that will not be recovered when the truck is sold, and the Dean of Food Services will only authorize the purchase if it is cash positive by the end of the 4th year, to determine, using the payback period method if the truck should be purchased and why, the following calculation must be performed:

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3 0
3 years ago
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marin [14]

Answer:

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5 0
3 years ago
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Yuri [45]

Answer:

b. Financing activities.

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