Riverboat Adventures pays $310,000 plus $15,000 in closing costs to buy out a competitor. The real estate consists of land appra
ised at $35,000, a building appraised at $105,000, and paddleboats appraised at $210,000. Compute the cost that should be allocated to the land.
2 answers:
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Answer:
July = $237,600
August = $238,400
Explanation:
Note that credit sales account for only 80% of total sales, the remainder should be considered as cash receipts in the month of sale. Cash receipts for July are 20% of July total sales, plus 25% of July credit sales, plus 55% of June credit sales, and 20% of May credit sales:
Cash receipts for August are 20% of August total sales, plus 25% of August credit sales, plus 55% of July credit sales, and 20% of June credit sales:
Budgeted cash receipts are:
July = $237,600
August = $238,400