Question

Sheffield Corp. reported the following information for 2016: October November December Budgeted sales $1200000 $1120000 $1400000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much cash will Sheffield receive in November?

Answer 1

Answer: $1,160,000

Step-by-step explanation:

The amount of cash that Sheffield will receive in November will be calculated as:

= (October budget sales × 50%) + (Novemeber budgeted sales × 50%)

= ($1200000 × 50%) + ($1120000 × 50%)

= $600,000 + $560,000

= $1,160,000

Sheffield will receive $1,160,000 in November.