Meredith Company has budgeted sales for the upcoming months as follows: April $ 458,000 May $...

Meredith Company has budgeted sales for the upcoming months as follows: April $ 458,000 May $ 469,000 June $ 498,000 July $ 517,000 August $ 501,000 September $ 482,000 40% of the sales are credit sales, the remainder are made in cash. Credit sales are collected 50% in the month of sale, 35% in the month following the sale, and 6% in the second month following the sale. a. Compute Meredith Company’s cash receipts for June. (Do not round intermediate calculations.) b. Compute Meredith Company’s cash receipts for July. (Do not round intermediate calculations.) c. Compute Meredith Company’s cash receipts for August. (Do not round intermediate calculations.)

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Expert Solution

	Cash sales(60%)	Credit sales(40%)
April	(458000*60%)=$274800	(458000*0.4)=$183200
May	(469000*60%)=$281400	(469000*0.4)=$187600
June	(498000*60%)=$298800	(498000*0.4)=$199200
July	(517000*60%)=$310200	(517000*0.4)=$206800
August	(501000*60%)=$300600	(501000*0.4)=$200400
September	(482000*60%)=$289200	(482000*0.4)=$192800

1.cash receipts for June=Cash receipts for June+(Credit receipts for June*0.5)+(Credit receipts for May*0.35)+(Credit receipts for April*0.06)

=298800+(199200*0.5)+(187600*0.35)+(183200*0.06)

=$475052

2.cash receipts for July=Cash receipts for July+(Credit receipts for July*0.5)+(Credit receipts for June*0.35)+(Credit receipts for May*0.06)

=310200+(206800*0.5)+(199200*0.35)+(187600*0.06)

=$494576

3.cash receipts for August=Cash receipts for August+(Credit receipts for August*0.5)+(Credit receipts for July*0.35)+(Credit receipts for June*0.06)

=300600+(200400*0.5)+(206800*0.35)+(199200*0.06)

=$485132.

ekkarill92 answered 1 year ago

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