Practice Problem 29
The forecasted sales pertain to Risco, Inc.:
50 percent in month of sale
50 percent in month following the sale
Accounts Receivable (December 31) $70,000
Finished Goods Inventory (December 31) 80,000
The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20 percent of the next month's sales.
How much cash does Risco expect to collect in February?© BrainMass Inc. brainmass.com June 3, 2020, 10:34 pm ad1c9bdddf
The following solution shows calculations of expected cash collection during the month.