Asked by Estefanie Estupinan on May 12, 2024
Verified
Sirignano Corporation produces and sells one product. The budgeted selling price per unit is $84. Budgeted unit sales for October, November, December, and January are 8,400, 12,000, 13,800, and 14,300 units, respectively. All sales are on credit with 40% collected in the month of the sale and 60% in the following month. The expected cash collections for November is closest to:
A) $826,560
B) $705,600
C) $423,360
D) $403,200
Budgeted Selling Price
An estimated amount for which a product is expected to be sold, determined during the budgeting process.
Budgeted Unit Sales
The number of units a company anticipates selling in a future period as outlined in its budget.
Cash Collections
The process of receiving and managing the cash a company receives from its customers, sales, or other sources.
- Acquire knowledge on the basics of cash collections and accounts receivable as they pertain to budgetary considerations.
- Investigate projected sales data to assess foreseen cash gatherings, anticipated accounts receivable tallies, and planned revenue numbers.
Verified Answer
Learning Objectives
- Acquire knowledge on the basics of cash collections and accounts receivable as they pertain to budgetary considerations.
- Investigate projected sales data to assess foreseen cash gatherings, anticipated accounts receivable tallies, and planned revenue numbers.
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