Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000...

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Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000...

Grinnell Manufacturing Company has the following information for 2015:

Month	Budgeted Sales
January	$76,000
February	85,000
March	92,000
April	79,000

Budget Expenses per Month

Wages	$15,000
Advertising	12,000
Depreciation	3,000
Other	4 percent of sales

Note: All cash expenses are paid as incurred; Collections from sales are 50% in the month of sale and 50% in the month following the sale; December 2014 sales were $110,000.

What are the expected total cash receipts for February?

		$89,000
		$118,500
		$85,000
		$88,500
		$80,500

business accounting

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Answer 1

Answer #1

Expected cash receipts for February 50% of sales of January, collected in February following the month of sale 50% of sales of February, in the month of sale Expected cash receipts for February $ 38,000 | ($ 76,000 * 50%) 42,500 |S 85,000 * 50%) | S $ 80,500 Answer is option 5 $80,500

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Answer 2

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Grinnell Manufacturing Company has the following information for 2015: Month Budgeted Sales January $76,000 February 85,000...

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