Solution-How much cash can warehouse corporation expect to

How much cash can warehouse corporation expect to collect

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Problem 1: Warehouse Corporation completes 40% of their sales in cash, the rest are on credit. Of the credit sales, the company collects 20% in the same month of the sale, 70% in the month following the sale, and the remaining 10% two months after the sale. Budgeted sales for the upcoming three months are $225,000 for January, $280,000 for February, and $330,000 for March. Assume all accounts receivable on December 31st are collected during January. Based on this information, how much cash can Warehouse Corporation expect to collect during the month of March?

Option A. Warehouse Corporation will collect $170,700 in cash during March.

Option B. Warehouse Corporation will collect $225,100 in cash during March.

Option C. Warehouse Corporation will collect $357,100 in cash during March.

Option D. Warehouse Corporation will collect $249,900 in cash during March.

Option E. Warehouse Corporation will collect $302,700 in cash during March.

Reference no: EM132516939

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How much cash can warehouse corporation expect to collect

Reference no: EM132516939

Reference no: EM132516939

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