What the total budgeted cash collections for collection corp

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Reference no: EM133153717

Question - Information pertaining to Collection Corporation's sales revenue is presented below:

 

November

December

January

Cash sales

$96,000

$125,000

$78,000

Credit sales

288,000

450,000

234,000

Total sales

$384,000

$575,000

$312,000

Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices.

Required - What the total budgeted cash collections for Collection Corporation in December?

Reference no: EM133153717

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