Magic Balls Ltd specialises in football memorabilia. Therefore, the company's sales are seasonal. Budgeted figures are presented below.
From past experience, Magic Balls Ltd has learned that of credit sales, 70% are collected in the month of sale and 30% are collected in the month following the sale.
Instructions : Assuming the fourth quarter sales for the previous year totalled $420,000, determine Magic Balls' cash collections for each of the four quarters.

Question

Magic Balls Ltd specialises in football memorabilia. Therefore, the company's sales are seasonal. Budgeted figures are presented below.
  From past experience, Magic Balls Ltd has learned that of credit sales, 70% are collected in the month of sale and 30% are collected in the month following the sale.
Instructions : Assuming the fourth quarter sales for the previous year totalled $420,000, determine Magic Balls' cash collections for each of the four quarters.

Quizplus · Accepted Answer

The Answer of Magic Balls Ltd specialises in football memorabilia. Therefore, the company's sales are seasonal. Budgeted figures are presented below.
  From past experience, Magic Balls Ltd has learned that of credit sales, 70% are collected in the month of sale and 30% are collected in the month following the sale.
Instructions : Assuming the fourth quarter sales for the previous year totalled $420,000, determine Magic Balls' cash collections for each of the four quarters.

Magic Balls Ltd Specialises in Football Memorabilia