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15 June, 03:10

Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: Jan Feb March Sales (25 % cash) $ 400 comma 000.00 $ 600 comma 000.00 $ 900 comma 000.00 The company collects 70 % of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February.

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  1. 15 June, 03:16
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    555 000 US$

    Explanation:

    Cash sales (25%) Credit sales (75%)

    January (400,000*25%) = 100000 (400,000-100000) = 300,000

    February (600,000*25%) = 150,000 (600,000-150,000) = 450,000

    Customer collections to the month of February.

    = $150,000 + ($450,000 * 0.7) + ($300,000*0.3)

    (Balance collections = (100 - 70) = 30%)
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Home » Business » Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: Jan Feb March Sales (25 % cash) $ 400 comma 000.00 $ 600 comma 000.00 $ 900 comma 000.
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