Place, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July Budgeted sales $299000 $289000 $319000 $279000 $209000 Budgeted purchases $143000 $119000 $127000 $131000 $89000 • Customer amounts on account are collected 60% in the month of sale and 40% in the following month. • Cost of goods sold is 70% of sales. • Crane purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. • Operating expenses are: Salaries, $49000; Depreciation, $11000; Rent, $14000; and Utilities, $13000. • Accounts payable is used only for inventory acquisitions. How much cash will Place receive during May from customers?

Place, Inc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2022 are: March April May June July Budgeted sales $299000 $289000 $319000 $279000 $209000 Budgeted purchases $143000 $119000 $127000 $131000 $89000 • Customer amounts on account are collected 60% in the month of sale and 40% in the following month. • Cost of goods sold is 70% of sales. • Crane purchases and pays for merchandise 30% in the month of acquisition and 70% in the following month. • Operating expenses are: Salaries, $49000; Depreciation, $11000; Rent, $14000; and Utilities, $13000. • Accounts payable is used only for inventory acquisitions. How much cash will Place receive during May from customers?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 10PB: All Temps has a policy of always paying within the discount period, and each of its suppliers...

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