Drew Enterprises reports all its sales on credit, and pays operating costs in the month incurred. Estimated amounts for the months of June through October are:

June July August September October
Budgeted sales $310,000 $330,000 $300,000 $280,000 $260,000
Budgeted purchases $144,000 $120,000 $128,000 $132,000 $90,000
• Customer amounts on account are collected 60% in the month of sale and 40% in the following month.
• Cost of goods sold is 45% of sales.
• Drew purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month.

How much cash is budgeted to be received during August?

Question

contestada

Respuesta :

**ASAP** petroleum is a mixture consisting mostly of____? a.) aromatic hydrocarbons b.) methane and long branches alkanes c.) methane, ethane, propane, and is

ACCESS MORE EDU ACCESS

Dryomys Dryomys · Answer 1 · 2019-12-31T09:45:57+01:00

Answer:

$312,000

Explanation:

Given that,

August Sales = $300,000

July sales = $330,000

Customer amounts on account are collected 60% in the month of sale and 40% in the following month.

Cash Receipts during August:

= (August Sales × 60%) + (July Sales × 40%)

= ($300,000 × 60%) + ($330,000 × 40%)

= $180,000 + $132,000

= $312,000

Therefore, the cash is budgeted to be received during August is $312,000.