Question

Shake Shack’s Vegan Burgers reports the following information from its sales budget: Expected Sales: May $133,000...

Shake Shack’s Vegan Burgers reports the following information from its sales budget:

Expected Sales:
May $133,000
June 120,000
July 155,000

All sales are on credit and cash receipts are expected to be collected 40% in the month of sale and 60% in the month following sale. The total amount of cash expected to be recieved from customers in June is:


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Answer #1

rate positively .. let me know if you need any clarification..

Computation of cash collection in june
Amount
40% of current month sales 120,000*40% 48000
60% of last month sales 133000*60% 79800
Cash collection in June 127800
therefore answer = 127800
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