Seventy percent of Parlee Corporation's sales are collected in the month of sale, 25% in the month following sale, and 5% in the

Question

3 years ago

6

Seventy percent of Parlee Corporation's sales are collected in the month of sale, 25% in the month following sale, and 5% in the

second month following sale. The following are budgeted sales data for the company: January February March April Total sales $600,000 $700,000 $500,000 $300,000 Total budgeted cash collections in April would be: Group of answer choices $35,000 $125,000 $210,000 $370,000

Business

1 answer:

GuDViN [60] · Answer 1 · 2022-03-22T18:39:48+03:00

Answer: $370,000

Explanation:

Based on the information given in the question, the total budgeted cash collections in April would be calculated as the addition of the sales value from February to April and this will be:

February sale = 5% × $700,000 = $35,000

Add: March sale = 25% × $500,000 = $125,000

Add: April Sale = 70% × $300000 = $210000

Total Collection = $370000