Taylor Inc.sells and installs residential water heaters.Its customers pay for their water heaters over four months by paying in equal,monthly instalments.The sales price of an installed water heater is $600.Taylor sold and installed the following number of water heaters in the first six months of 2009:
$\begin{array}{lc}
\text { January } & 80 \text { units } \
\text { February } & 100 \text { units } \
\text { March } & 70 \text { units } \
\text { April } & 84 \text { units } \
\text { May } & 90 \text { units } \
\text { June } & 75 \text { units }
\end{array}$
Cash receipts for June are expected to be:
A) $ 74 850
B) $118 050
C) $ 47 850
D) $191 400

Question

Taylor Inc.sells and installs residential water heaters.Its customers pay for their water heaters over four months by paying in equal,monthly instalments.The sales price of an installed water heater is $600.Taylor sold and installed the following number of water heaters in the first six months of 2009:
$\begin{array}{lc}
\text { January } & 80 \text { units } \
\text { February } & 100 \text { units } \
\text { March } & 70 \text { units } \
\text { April } & 84 \text { units } \
\text { May } & 90 \text { units } \
\text { June } & 75 \text { units }
\end{array}$ 
Cash receipts for June are expected to be:
A) $ 74 850
B) $118 050
C) $ 47 850
D) $191 400

Quizplus · Accepted Answer

To calculate the cash receipts for June, we need to consider the sales from March, April, May, and June, as customers pay over four months in equal installments. The sales price of one water heater is $600, and the monthly installment per unit is $600 / 4 = $150.- March sales: 70 units * $150 = $10,500- April sales: 84 units * $150 = $12,600- May sales: 90 units * $150 = $13,500- June sales: 75 units * $150 = $11,250Adding these amounts gives the total cash receipts for June: $10,500 + $12,600 + $13,500 + $11,250 = $47,850.

Taylor Inc Cash Receipts for June Are Expected to Be: A)

Taylor Inc Cash Receipts for June Are Expected to Be:
A)