Explore BrainMass

Explore BrainMass

    Important information about Cash Collections in April

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Question 1:

    Sioux Company is estimating the following sales for the first six months of next year:

    January $248,000
    February $213,000
    March $232,000
    April $297,000
    May $355,000

    Sales at Sioux are normally collected as 55% in the month of sale, 41% in the month following the sale, and the remaining 4% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?

    $300,470
    $258,470
    $284,470
    $223,470

    © BrainMass Inc. brainmass.com June 3, 2020, 10:10 pm ad1c9bdddf
    https://brainmass.com/business/accounting/important-information-about-cash-collections-in-april-218610

    Solution Summary

    The solution explains how to calculate the cash collections in April

    $2.19

    ADVERTISEMENT