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Question - Below is a summary of the past and expected future sales (all values in R):
B Ltd. has given you the following information to prepare its cash budget for December 20XX.
October November December
R80 000 R70 000 R100 000
50% of sales are on credit.
40% of credit sales are collected in the month of sale and the remainder in the month thereafter.
Purchases amount to 60% of sales.
All purchases are on credit.
50% of purchases are paid in the first month following the month of purchase and the remainder is settled in the second month after the month of purchase.
What amount of November's credit sales will be collected in December?
A. R20 000
B. R17 500
C. R35 000
D. R21 000
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