Asked by Bernadette Kongswasdi on May 03, 2024
Verified
The expected cash collections for May is closest to:
A) $920,400
B) $995,920
C) $552,240
D) $443,680
Cash Collections
The process of gathering all received cash and cash equivalents, including payments from customers and other sources.
- Acquire knowledge on cash budgeting, focusing on maintaining a minimal cash balance and identifying financing needs.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
B
Explanation :
The expected cash collections for May can be calculated as follows:
75% of April sales ($950,000 * 75%) = $712,500
25% of May sales ($1,200,000 * 25%) = $300,000
Total expected cash collections = $712,500 + $300,000 = $1,012,500
Therefore, the closest answer is B) $995,920.
75% of April sales ($950,000 * 75%) = $712,500
25% of May sales ($1,200,000 * 25%) = $300,000
Total expected cash collections = $712,500 + $300,000 = $1,012,500
Therefore, the closest answer is B) $995,920.
Explanation :
The expected cash collections for May are computed as follows: 
Learning Objectives
- Acquire knowledge on cash budgeting, focusing on maintaining a minimal cash balance and identifying financing needs.