Question

Bramble Corp. reported the following information for 2016: October November December Budgeted sales $1250000 $1150000 $1450000 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 Bramble receive in November?a. $575000.b. $1200000.c. $1300000.d. $1150000.

Answer 1

Answer:

b. $1200000

Explanation:

Calculation for How much cash will Bramble receive in November

Using this formula

Cash receive in November = October Budgeted sales + Budgeted sales of November

Let plug in the formula

Cash receive in November= ($1,250,000 × 50%) + $1,150,000 × 50%)

Cash receive in November= $625,000 + $575,000

Cash receive in November= $1,200,000

Therefore the amount that Bramble receive in November will be $1,200,000