Question

Sioux Corporation is estimating the following sales for the first four months of next year:January$210,000February$280,000March$340,000April$370,000-Sales are normally collected 60% in the month of sale and 40% in the month following the sale. Based on this information, how much cash should Sioux expect to collect during the month of April

Answer 1

Answer:

$358,000

Explanation:

Calculation to determine how much cash should Sioux expect to collect during the month of April

April sales collected in April ($370,000 × 60%) $222,000

March sales collected in April ($340,000 × 40%) $136,000

Total cash collections in April $358,000

($222,000+$136,000)

Therefore the amount of cash that Sioux should expect to collect during the month of April is $358,000