Natcher Corporation collects 30% of a month's sales in the month of sale,55% in the month following sale,and 10% in the second month following sale.The company has found that 5% of their sales are uncollectible.Budgeted sales for the upcoming four months are:

The amount of cash that will be collected in November is budgeted to be

Question

Natcher Corporation collects 30% of a month's sales in the month of sale,55% in the month following sale,and 10% in the second month following sale.The company has found that 5% of their sales are uncollectible.Budgeted sales for the upcoming four months are:

The amount of cash that will be collected in November is budgeted to be

Quizplus · Accepted Answer

A)
Sept.Sales $280,000 × 10% = $28,000
Oct.Sales 330,000 × 55% = 181,500
Nov.Sales 260,000 × 30% = 78,000
Total $287,500

Natcher Corporation Collects 30% of a Month's Sales in the Month