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examchap7 - Folk Exam Questions - Chapter 7 1. Ingersoll...

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Folk Exam Questions - Chapter 7 1. Ingersoll Company's sales are 50% in cash and 50% on credit. Seventy percent of the credit sales are collected in the month of sale, 20% in the month following sale, and 5% in the second month following sale. The remainder are uncollectible. The following are budgeted sales data: September October November December Total sales $100,000 $140,00 0 $120,000 $160,000 What would the total cash receipts in December be budgeted to be? Solution: Month of Sale Collected during December Calculation December: Credit $ 56,000 ($160,000 x .50 x . 70) Cash 80,000 ($160,000 x .50) November 12,000 ($120,000 x .50 x .20) October 3,500 ($140,000 x .50 x .05) Total $151,500 2. Rand Company plans to sell 48,000 units during the month of August. If the company has 10,000 units on hand at the start of the month, and plans to have 8,000 units on hand at the end of the month, how many units must be produced during the month? Solution:
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examchap7 - Folk Exam Questions - Chapter 7 1. Ingersoll...

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