Mapleview Inc. has the following budgeted sales:

July $200,000

August $300,000

Sept $250,000

40% of the sales are for cash. 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% for the next month. The total expected cash receipts during September are:

A) $265,000

B) $262,500

C) $250,000

D) $280,000

Question

Chambers

Business

5 December, 06:18

Mapleview Inc. has the following budgeted sales:

July $200,000

August $300,000

Sept $250,000

40% of the sales are for cash. 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% for the next month. The total expected cash receipts during September are:

A) $265,000

B) $262,500

C) $250,000

D) $280,000

+3

Answers (1)

Know the Answer?

Dalton Holland · Answer 1

Answer: A) $265,000

Explanation: budgeted sales:

July $200,000 -

Cash sales = 200,000 x 40% = 80,000

Credit sales = 200,000 x 60% = 120,000. 60,000 collected in July, 60,000 collected in August.

August $300,000 -

Cash sales = 300,000 x 40% = 120,000

Credit sales = 300,000 x 60% = 180,000. 90,000 collected in August, 90,000 collected in September

Sept $250,000-

Cash sales = 250,000 x 40% = 100,000

Credit sales = 250,000 x 60% = 150,000. 75,000 collected in September 75,000 collected in October

Total collected in the month of September is $100,000+$90,000+$75,000 = $265,000