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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:

Question

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:

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Solution

To calculate the total amount of cash expected to be received from customers in November, we need to consider both the collections from November sales and the collections from October sales.

  1. First, calculate the cash collected from November sales. As stated, 35% of sales are collected in the month of sale. So, 35% of 144,000equals144,000 equals 50,400.

  2. Next, calculate the cash collected from October sales in November. As stated, 65% of sales are collected in the month following sale. So, 65% of 136,000equals136,000 equals 88,400.

  3. Finally, add these two amounts together to find the total cash collected in November. 50,400(fromNovembersales)+50,400 (from November sales) + 88,400 (from October sales) equals $138,800.

So, the total amount of cash expected to be received from customers in November is $138,800.

This problem has been solved

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