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    Jensen Corporation Sales Forecast

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    Jensen Corporation has the following sales forecasts for the selected three month period in 2011.

    Month: Sales:
    July $24,000
    August $14,000
    September $16,000

    Seventy percent of sales are collected in the month of the sale, and the remainder are collected in the following month.

    Accounts Receivable balance (July 1, 2011) $20,000
    Cash Balance (July 1, 2011) $10,000

    Minimum cash balance is $10,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges).

    How much cash would be collected in September from sales?

    A. 15,400
    B. 17,000
    C. 16,000
    D. 20,000

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    https://brainmass.com/business/cash-budgeting/jensen-corporation-sales-forecast-246075

    Solution Preview

    Jensen Corporation has the following sales forecasts for the selected three month period in 2011.

    Month: Sales:
    July $24,000
    August ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer how much cash would be collected in September from sales.

    $2.19

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