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Nocioni's Management Consultants

Nocioni's Management Consultants has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed.

During December 2007, Nocioni's invoiced $200,000 to clients. Projected revenues for the first six months of 2008 are given below:Month Revenue
January $180,000
February 205,000
March 220,000
April 218,000
May 230,000
June 255,000

Reference: Ref 10-2

What are the expected cash receipts for May 2008?

Student Response
1. $219,800
2. $221,800
3. $230,000
4. $228,900

Score: 0/0.4

Nocioni's Management Consultants has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed.

During December 2007, Nocioni's invoiced $200,000 to clients. Projected revenues for the first six months of 2008 are given below:Month Revenue
January $180,000
February 205,000
March 220,000
April 218,000
May 230,000
June 255,000

Reference: Ref 10-2

What are the expected cash receipts for April 2008?

Student Response
1. $218,000
2. $215,300
3. $219,800
4. $217,900

Score: 0/0.36

Nocioni's Management Consultants has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed.

During December 2007, Nocioni's invoiced $200,000 to clients. Projected revenues for the first six months of 2008 are given below:Month Revenue
January $180,000
February 205,000
March 220,000
April 218,000
May 230,000
June 255,000

Reference: Ref 10-2

What are the expected cash receipts for March 2008?

Student Response
1. $199,000
2. $207,000
3. $128,500
4. $220,000

Score: 0/0.33

Solution Preview

Nocioni's Management Consultants has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed.

During December 2007, Nocioni's invoiced $200,000 to clients. Projected revenues for the first six months of 2008 are given below:

Month Revenue

January $180,000
February 205,000
March 220,000
April 218,000
May 230,000
June 255,000

Reference: Ref 10-2

What are the ...

Solution Summary

This solution is comprised of a detailed explanation to answer what are the expected cash receipts for May 2008.

$2.19