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Solution Library
Avril Company: calculate a company’s cash collections in a month
Question
Avril Company makes collections on sales according to the following schedule:
50% in the month of sale
45% in the month following sale
5% in the second month following sale
The following sales are expected:
|
Expected Sales |
|
|
January |
$180,000 |
|
February |
$190,000 |
|
March |
$180,000 |
Cash collections in March should be budgeted to be:
a. $184,500
b. $175,500
c. $180,000
d. $180,900
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