Reference no: EM132622273

Questions -

Q1. Jumbotron Inc. had sales of $8,000 in November, $14,000 in December, and projects sales of $10,000 for January, $12,000 for February, and $8,000 for March. The firm's cost of goods sold every month is equal to 70% of the next month's sales. The firm collects its receivables in 60 days and pays its payables in 30 days. The firm begins January 1 with $10,000 in cash. All sales and purchases are on credit. What is Jumbotron's accounts receivable at the end of January?

A. $10,000

B. $14,000

C. $22,000

D. $24,000

E. $32,000

Q2. Ajax Corporation estimates that for credit sales, 20% of cash is received in the month of sale; 60% in the month after the sale, and 15% second month after the sale. The remainder is never collected. Ajax had credit sales of $23,000 in January; $23,000 in February, and $19,000 in March. Given the following information, determine the cash collections for March.

A. $18,500

B. $20,600

C. $22,700

D. $24,800

E. $26,900