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madreJ [45]
2 years ago
13

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:
Jan Feb Mar Apr
Total Sales $600,000 $700,000 $500,000 $300,000
Total Budgeted cash collections in April would be:________.
a. $125,000.
b. $210,000.
c. $370,000.
d. $35,000.
Business
1 answer:
Gnoma [55]2 years ago
4 0

Answer:

C) $370,000

Explanation:

sales expressed in thousands of $

Month          total sales       collected in          collected in         collected  

                                            current m. 70%     next m. 25%       2 m. 5%

Jan.              600                420            

Feb.              700                490                         150

Mar.              500                350                         175                     30

Apr.              300                 <u>210</u>                          <u>125</u>                     <u>35</u>

May                                                                      75                      25

June                                                                                               15

total cash collection in April = $210,000 + $125,000 + $35,000 = $370,000

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