Information pertaining to Yekstop Corp.'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. Total budgeted cash collections in January by Yekstop Corp. are:

Question

Jonas Massey

Business

24 December, 00:18

Information pertaining to Yekstop Corp.'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. Total budgeted cash collections in January by Yekstop Corp. are:

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Nobel · Answer 1

Answer: $369,600 is collected in January

Explanation: Yekstop Corp

November December January

Sales Revenue : $96,000 $125,000 $78,000

Credit Sales: $288,000 $450,000 $234,000

Total Sales: $384,000 $575,000 $312,000

4% of credit sales: $11,520 $18,000 $9,360

65% of credit sale: $187,200 $292,500 $152,100

31% of credit sale: $89,280 $139,500 $72,540

Opening Inventory: $288,000 $431,250 $234,000

(75% of sales)

Total cash collections for January = $78,000+$152,100+$139,500

= $369,600