insurance is paid quarterly on march 31 june 30 september 30 and dec 31 594017
Calculate the cash receipts for April.
- $110,000
- $91,500
- $96,000
- $68,400
Grobots Company prepared the following information for the upcoming four month period:
|
Month |
Budgeted Sales |
|
January |
$75,000 |
|
February |
78,000 |
|
March |
90,000 |
|
April |
110,000 |
|
Budgeted Expenses per Month |
|||
|
Salaries |
$25,000 |
Selling Cost |
$20,000 |
|
Depreciation |
$5,000 |
Insurance |
$3,000 |
Salaries and selling costs are paid during the month they are incurred. Insurance is paid quarterly on March 31, June 30, September 30, and Dec 31.
Sales are collected as follows: 30% in the month of sale, 65% in the month after sale, and 5% are uncollectable. Purchases are 30% of sales of a given month and are paid in full the following month.