Garibaldi Inc.collects 40% of its sales in the month of sale and the other 60% in the following month.The following shows budgeted sales for October through December.
$$\begin{array} { l l }
\text { October } & \$ 3,900,000 \
\text { Novernber } & \$ 4,350,000 \
\text { Decerrber } & \$ 4,725,000
\end{array}$$
What is the amount of cash receipts budgeted for November?
A)$4,080,000
B)$1,740,000
C)$2,340,000
D)$2,835,000
E)None of the answer choices is correct.

Question

Garibaldi Inc.collects 40% of its sales in the month of sale and the other 60% in the following month.The following shows budgeted sales for October through December.
$$\begin{array} { l l } 
\text { October } & \$ 3,900,000 \
\text { Novernber } & \$ 4,350,000 \
\text { Decerrber } & \$ 4,725,000
\end{array}$$
What is the amount of cash receipts budgeted for November?
A)$4,080,000
B)$1,740,000
C)$2,340,000
D)$2,835,000
E)None of the answer choices is correct.

Quizplus · Accepted Answer

40% of November sales will be collected in November, and 60% of October sales will be collected in November. So, the total cash receipts budgeted for November are:0.40 * $4,350,000 + 0.60 * $3,900,000 = $4,080,000

Garibaldi Inc October $3,900,000 Novernber $4,350,000 Decerrber $4,725,000\begin{array} { l l } \text { October } & \$ 3,900,000 \\\text { Novernber } & \$ 4,350,000 \\\text { Decerrber } & \$ 4,725,000\end{array} October Novernber Decerrber ​$3,900,000$4,350,000$4,725,000​

Garibaldi Inc $\begin{array} { l l } \text { October } & \$ 3,900,000 \\\text { Novernber } & \$ 4,350,000 \\\text { Decerrber } & \$ 4,725,000\end{array}$