Meredith Company has budgeted sales for the upcoming months as follows:
Forty percent of the sales are credit sales,the remainder are made in cash.Credit sales are collected 50% in the month of sale,40% in the month following the sale,and 8% in the second month following the sale.
a.Compute Meredith Company's cash receipts for June.
b.Compute Meredith Company's cash receipts for July.
c.Compute Meredith Company's cash receipts for August.

Question

Meredith Company has budgeted sales for the upcoming months as follows:
  Forty percent of the sales are credit sales,the remainder are made in cash.Credit sales are collected 50% in the month of sale,40% in the month following the sale,and 8% in the second month following the sale.
a.Compute Meredith Company's cash receipts for June.
b.Compute Meredith Company's cash receipts for July.
c.Compute Meredith Company's cash receipts for August.

Quizplus · Accepted Answer

The Answer of Meredith Company has budgeted sales for the upcoming months as follows:
  Forty percent of the sales are credit sales,the remainder are made in cash.Credit sales are collected 50% in the month of sale,40% in the month following the sale,and 8% in the second month following the sale.
a.Compute Meredith Company's cash receipts for June.
b.Compute Meredith Company's cash receipts for July.
c.Compute Meredith Company's cash receipts for August.

Meredith Company Has Budgeted Sales for the Upcoming Months as Follows