Information for Rambo Corporation's cash budget is: $$\begin{array} { l r c c c }
\text { Quarter } & 1 & 2 & 3 & 4 \
\text { Estimated Sales (units) } & 100 & 200 & 300 & 200
\end{array}$$ Each unit sells for $12 and 80% of sales are on credit.Credit sales are collected as follows: 25% in the quarter of the sale and the balance in the following quarter.How many dollars of 3rd quarter sales will be collected in cash in the 4th quarter?

Question

Information for Rambo Corporation's cash budget is: $$\begin{array} { l r c c c } 
\text { Quarter } & 1 & 2 & 3 & 4 \
\text { Estimated Sales (units) } & 100 & 200 & 300 & 200
\end{array}$$ Each unit sells for $12 and 80% of sales are on credit.Credit sales are collected as follows: 25% in the quarter of the sale and the balance in the following quarter.How many dollars of 3rd quarter sales will be collected in cash in the 4th quarter?

Quizplus · Accepted Answer

In the 3rd quarter, sales are 300 units at $12 each, totaling $3,600. 80% of this is on credit, which is $2,880. 75% of these credit sales are collected in the 4th quarter, which is $2,160.

Information for Rambo Corporation's Cash Budget Is Quarter 1234 Estimated Sales (units) 100200300200\begin{array} { l r c c c } \text { Quarter } & 1 & 2 & 3 & 4 \\\text { Estimated Sales (units) } & 100 & 200 & 300 & 200\end{array} Quarter Estimated Sales (units) ​1100​2200​3300​4200​

Information for Rambo Corporation's Cash Budget Is $\begin{array} { l r c c c } \text { Quarter } & 1 & 2 & 3 & 4 \\\text { Estimated Sales (units) } & 100 & 200 & 300 & 200\end{array}$