Answer to Question #263255 in Management for Cyryl

Question

Mariel Co. reports all its sales on credit. Budgeted sales are 300,000 for March; 290,000 for April, and 320,000 for May. 70% of customer amounts on account are collected in the month of sale and 30% in the following month. How much cash will Mariel Co. receive in May from customers? *

3 points

Answer 1

Cash to be received in the month of May includes;

=30% of April's sales+ 70% of May's Sales

=(30/100*290000)+ (70/100*320000)

=87,000+22,4000

=311,000