Corvi Corporation produces and sells one product. The budgeted selling price per unit is $126. Budgeted unit sales are shown below: All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for August is closest to:

Question

Corvi Corporation produces and sells one product. The budgeted selling price per unit is $126. Budgeted unit sales are shown below:  All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for August is closest to:

Quizplus · Accepted Answer

The expected cash collections for August are computed as follows:
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Corvi Corporation Produces and Sells One Product