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Question
Rich Company's experience shows that 20% of its sales are for cash and 80% are on credit. An analysis of credit sales shows that 50% are collected in the month following the sale, 45% are collected in the second month, and 5% prove to be uncollectible. Calculate items (1) through (10) below:
| August | September | October | November | |
| Sales | $500,000 | $525,000 | $535,000 | $560,000 |
| October | November | ||
| Receipts from cash sales | (1) _______ | (6) _______ | |
| Collections from August credit sales | (2) _______ | (7) _______ | |
| Collections from September credit sales | (3) _______ | (8) _______ | |
| Collections from October credit sales | (4) _______ | (9) _______ | |
| Total cash collections during the month | (5) _______ | (10) _______ | |
Answer
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Related questions
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Q:
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Q:
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A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
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A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.