Figure 8-4 Discus Productions Needs to Know Its Anticipated Cash

Figure 8-4 Discus Productions needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 10 percent of total sales each month. Historically, sales on account have been collected as follows: 60 percent in the month of sale, 30 percent in the month after the sale, and the remaining 10 percent two months after the sale. Sales for the quarter are projected as follows: April, $120,000; May, $100,000; and June, $80,000. Accounts receivable on March 31 were $60,000.
Refer to Figure 8-4. Discus Productions would expect to have an accounts receivable balance on June 30 of

A) $37,800.
B) $42,000.
C) $32,000.
D) $28,800.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free