How much cash should sioux expect to collect


Sioux Company is estimating the following sales for the first six months of next year:

January....... $250,000
February..... $220,000
March......... $240,000
April........... $300,000
May............ $360,000

Sales at Sioux are normally collected as 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?

a) $250,800

b) $264,000

c) $290,700

d) $306,000

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: How much cash should sioux expect to collect
Reference No:- TGS077988

Expected delivery within 24 Hours