Asked by Veronica Krall on Jun 24, 2024
Verified
Tracy Corp. expects sales of $30,000, $36,000 and $40,000 for the months of January, February and March respectively. Historically, 60% of credit customers pay in the month of sale, 30% in the month following the month of sale, and 10% in the second month following sale.
a. Forecast Tracy's March receipts if 100% of customers buy on credit.
b. Forecast Tracy's March receipts if 80% of customers buy on credit and 20% pay cash.
Credit Customers
Individuals or entities that purchase goods or services on credit, agreeing to pay the seller at a later date.
Receipts Forecast
An estimate of the amount of money expected to be received over a certain period, often used in budgeting and financial planning.
- Decipher financial declarations and anticipate financial trends.
- Employ theoretical concepts in the application of real-world financial planning activities.
Verified Answer
AW
Andrew WilliamsJun 26, 2024
Final Answer :
a. $30,000 × .1 + $36,000 × .3 + $40,000 × .6 = $37,800
b. $30,000 × .8 × .1 + $36,000 × .8 × .3 + $40,000 × .8 × .6+ $40,000 × .2 = $38,240
b. $30,000 × .8 × .1 + $36,000 × .8 × .3 + $40,000 × .8 × .6+ $40,000 × .2 = $38,240
Learning Objectives
- Decipher financial declarations and anticipate financial trends.
- Employ theoretical concepts in the application of real-world financial planning activities.
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