Question

Junior Snacks reports the following information from its sales budget: Expected Sales:October$136,000 November 144,000 December 180,000 All 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:

Answer 1

Total cash= $138,800

Step-by-step explanation:

Giving the following information:

Expected Sales:

October $136,000

November $144,000

December $180,000

All sales are on credit and are expected to be collected 35% in the month of sale and 65% in the month following sale.

Cash collection for November:

November sales= 144,000*0.35= $50,400

From October= 136,000*0.65= $88,400

Total cash= $138,800