Valentina Company Will Begin Operations on January 1st The Collection Policy of the Company Is to Collect 20

question 104

Essay

Valentina Company will begin operations on January 1st.The company has provided the following details concerning budgeted sales:
Budgeted Sales
$$\begin{array} { l l } \text { Jan } & \$ 75,000 \\\text { Feb } & 69,000 \\\text { March } & 80,000 \\\text { April } & 62,000 \\\text { May } & 80,500 \\\text { June } & 92,000\end{array}$$ The collection policy of the company is to collect 20% in the month of sale,40% in the following month,and remaining 40% in the second month after the month of sale.All sales are made on account.
Calculate the cash receipts from customers for the first six months.

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Definitions:

Increased Earnings

A situation or trend where an individual's or organization's income or profits grow over time.

Hostile Work Behavior

Actions or behaviors in the workplace that create a threatening or antagonistic environment.

Calling

A strong urge or inclination towards a particular career or vocational path often associated with a sense of purpose.

Work Satisfaction

The degree to which employees feel contented and fulfilled by their jobs.