Question

junior snacks reports the following information from its sales budget: expected sales: october $ 149,000 november 157,000 december 193,000 all sales are on credit and are expected to be collected 40% in the month of sale and 60% in the month following sale. the total amount of cash expected to be received from customers in november is:

Answer 1

To calculate the total amount of cash expected to be received from customers in November, we need to consider the sales made in October, November, and December and the expected collection percentages for each month.

Let's break it down step by step:

1. Calculate the cash collection for sales made in October:

October sales: $149,000

Collection in October: 40% of $149,000 = $59,600 (40% * $149,000)

2. Calculate the cash collection for sales made in November:

November sales: $157,000

Collection in November: 40% of $157,000 = $62,800 (40% * $157,000)

3. Calculate the cash collection for sales made in December:

December sales: $193,000

Collection in November: 60% of $193,000 = $115,800 (60% * $193,000)

4. Add the cash collections for each month in November:

Total cash expected to be received from customers in November:

$59,600 (from October) + $62,800 (from November) + $115,800 (from December) = $238,200

Therefore, the total amount of cash expected to be received from customers in November is $238,200.