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Ugo [173]
3 years ago
13

Sheffield Corp. reported the following information for 2016: October November December Budgeted sales $1200000 $1120000 $1400000

All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much cash will Sheffield receive in November?
Business
1 answer:
worty [1.4K]3 years ago
4 0

Answer: $1,160,000

Explanation:

The amount of cash that Sheffield will receive in November will be calculated as:

= (October budget sales × 50%) + (Novemeber budgeted sales × 50%)

= ($1200000 × 50%) + ($1120000 × 50%)

= $600,000 + $560,000

= $1,160,000

Sheffield will receive $1,160,000 in November.

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