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28 September, 05:28

Oriole Company has the following budgeted sales: January $210000, February $260000, and March $220000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during March are:

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  1. 28 September, 05:31
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    Answer: The total expected cash receipts during March is $232000.

    Explanation:

    Given that,

    Budgeted sales in January = $210000

    Budgeted sales in February = $260000

    Budgeted sales in March = $220000

    40% of sales are for cash and rest 60% are on credit

    Total cash receipts during march = cash sales in the month of march + Credit sales in the month of February + Credit sales in the month of march

    = 40% of 220000 + 260000 * 60% * 50% + 220000 * 60% * 50%

    = 88000+78000+66000

    = $232000

    Therefore, the total expected cash receipts during March is $232000.
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