Ruff Wear expects sales of $560,$650,$670,and $610 for the months of May through August,respectively.The firm collects 20 percent of sales in the month of sale,70 percent in the month following the month of sale,and 8 percent in the second month following the month of sale.The remaining 2 percent of sales is never collected.How much money does the firm expect to collect in the month of August?
A) $621
B) $628
C) $633
D) $639
E) $643 August collections = 0.20($610) + 0.70($670) + 0.08($650) = $643
Correct Answer:
Verified
Q5: Financial planning:
A)focuses solely on the short-term outlook
Q5: Assume each month has 30 days and
Q9: The Limited collects 25 percent of sales
Q11: Which of the following are viable techniques
Q13: Which one of the following statements is
Q15: Preston Fencing Company's sales,half of which are
Q17: On May 1,Vaya Corp.had a beginning cash
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents