Budgeted sales in Acer Corporation over the next four months are given below: Thirty percent of the company's sales are for cash and 70% are on account.Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale.Given these data, cash collections for December should be:

Question

Budgeted sales in Acer Corporation over the next four months are given below:  Thirty percent of the company's sales are for cash and 70% are on account.Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale.Given these data, cash collections for December should be:

Quizplus · Accepted Answer

Cash collections for December: 11ea7998_5d6a_9fd0_911b_db4b7ff5d4cd_TB2627_00_TB2627_00

Budgeted Sales in Acer Corporation Over the Next Four Months