Multiple Choice
Boone Co.'s sales, based on past experience, are 20% cash and 80% credit. Credit sales are typically collected as follows: 40% in the month of sale, 50% in the month after the sale, and 10% in the second month following month of sale. On December 31, the accounts receivable balance is $54,000, of which $12,000 is from November sales. Total sales for January and February are budgeted to be $100,000 and $120,000, respectively.
What are Boone Co.'s budgeted cash receipts for February?
A) $85,400.
B) $95,000.
C) $106,600.
D) $109,400.
E) $112,900.
Correct Answer:
Verified
Correct Answer:
Verified
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