Knowee
Questions
Features
Study Tools

Chocolate Company reports the following information from its sales budget: Expected sales: July $ 81,000August 101,000September 111,000Cash sales are normally 30% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:

Question

Chocolate Company reports the following information from its sales budget: Expected sales: July $ 81,000August 101,000September 111,000Cash sales are normally 30% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:

🧐 Not the exact question you are looking for?Go ask a question

Solution

To calculate the total amount of cash expected to be received from customers in September, we need to consider both the cash sales in September and the credit sales from August that will be collected in September.

  1. Calculate the cash sales for September: Cash sales are 30% of total sales. So, for September, the cash sales would be 30/100 * 111,000 = $33,300.

  2. Calculate the credit sales from August that will be collected in September: Credit sales are the remaining 70% of total sales. For August, the credit sales would be 70/100 * 101,000 = $70,700.

  3. Add the cash sales for September and the credit sales from August to get the total cash expected to be received in September: 33,300(cashsalesinSeptember)+33,300 (cash sales in September) + 70,700 (credit sales from August) = $104,000.

So, the Chocolate Company can expect to receive $104,000 in cash from customers in September.

This problem has been solved

Similar Questions

Fill in the Blank QuestionFill in the blank question.A manufacturing company's sales budget indicates the following sales: January: $30,000; February: $20,000; March: $15,000. The company expects 80% of the sales to be on account. Credit sales are collected 30% in the month of the sale and 70% in the month following the sale. The total cash receipts collected during March will be $.

Junior Snacks reports the following information from its sales budget:Expected sales: October $ 136,000November 144,000December 180,000All sales are on credit and are expected to be collected 35% in the month of sale and 65% in the month following sale. The total amount of cash expected to be received from customers in November is:

Our sourdough bakery had sales of $598 in December. Projected sales for the next quarter are: January $1,173 February $1,387 March $1,652 Sales are 59% cash and the remainder on credit. Debtors pay in the month following the sale. Calculate total cash collected from sales for the month of February. Please enter your answer to 2 decimal places.

Calculate the numerical value of the quantity asked.A chocolate company makes a variety of chocolates in three factories. The demand for chocolates is very seasonal, with peaks during the winter months and valleys during the summer months. Given the following costs and quarterly sales forecasts, determine the cost of level production strategy.Quarter Sales Forecast (in pounds)January–March 80,000April–June 50,000July–September 1,20,000October–December 1,50,000Hiring cost = $100 per workerFiring cost = $500 per workerInventory carrying cost = $0.50 per pound per quarterRegular production cost per pound = $2.00Production per employee = 1000 pounds per quarterBeginning workforce = 100 workers

Ruiz Company’s budget includes the following credit sales for the current year: September, $158,000; October, $149,000; November, $133,000; December, $170,000. Credit sales are collected as follows: 10% in the month of sale, 60% in the first month after sale, and 30% in the second month after sale. How much cash can the company expect to collect in December as a result of current and past credit sales?

1/2

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.