Question

copper corporation has the following sales budget for the last six months of 2007: july $200,000 october $180,000 august $160,000 november $200,000 september $220,000 december $188,000 historically, the cash collection of sales has been as follows: 65 percent of sales collected in month of sale, 25 percent of sales collected in month following sale, 8 percent of sales collected in second month following sale, and 2 percent of sales is uncollectible. what are the cash collections for september?

Answer 1

The Copper Corporation's cash collections for September amount to $199,000, calculated based on the percent of collections from sales of that month, the previous month, and the month before that.

Step-by-step explanation:

To calculate the cash collections for September for Copper Corporation, we would have to consider the sales made in July, August, and September, as some of the sales from these months would be collected in September according to the historical cash collection data. Here's the breakdown: 65% of September sales are collected in September: 0.65 × $220,000 = $143,000, 25% of August sales are collected in September: 0.25 × $160,000 = $40,000, 8% of July sales are collected in September: 0.08 × $200,000 = $16,000. Adding these amounts together gives us the total cash collections for Copper Corporation in September: $143,000 + $40,000 + $16,000 = $199,000.