Consider the cash receipts projections of Roxy Inc.that is developing a cash budget for October ,November and December; sales in August and September were $600,000 and $500,000 respectively.The forecast sales are $400,000,$300,000 and $200,000 for October,November and December respectively.20 % of sales are cash sales and 80% are credit sales; collects about 70% of each month's sales in the next month but waiting until the following month for the remaining 10% of sales.Bad debts are negligible.The Firm is expectsing cash dividend of $10,000 in December from a subsidiary.What are the total cash receipts in December? (In thousands)
A) $300
B) $290
C) $250
D) $340
Correct Answer:
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