Sign In Sign Up Ask an AI advisor
caitlyn2750
caitlyn2750
05.05.2020 • 
Business

Fastway estimates its sales at 240,000 units in the first quarter and that sales will increase by 24,000 units each quarter during the year. Fastway has, and desires, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of sales are for cash, and the balance are on credit terms. 70% of credit customers pay within the same quarter as when associated sales occur, and the remainder of credit customers pay in the quarter following associated sales. Given the above, cash collections for the third quarter are budgeted at Select one: a. $7,092,000. b. $5,708,000. c. $4,068,000. d. $8,208,000. e. $5,904,000.

Solved
Show answers

Ask an AI advisor a question

I want advice