Information pertaining to Brenton Corporation's sales
Question # 00677451
Posted By:
Updated on: 04/26/2018 09:09 AM Due on: 04/26/2018
Information pertaining to Brenton Corporation's sales revenue is presented in the following table:
February March April
Cash Sales $160,000 $150,000 $120,000
Credit Sales 300,000 400,000 280,000
Total Sales $460,000 $550,000 400,000
Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 75% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month is 80% of the next month's projected total sales. All purchases of inventory are on account; 50% are paid in the month of purchase, and the remainder is paid in the month following the purchase.
Brenton's budgeted total cash receipts in April are
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Rating:
/5
Solution: Information pertaining to Brenton Corporation's sales