From the Following Data Calculate the Estimated Cash Received from Total

question 14

Multiple Choice

From the following data calculate the estimated cash received from total sales for the month of June.
Total sales for April,$42 000; May,$54 000; June,$38 000.
Credit sales are normally settled in the pattern: 50% in the month of sale,40% in the first month following the sale,and the balance in the second month following the sale.

• A) $44 800
• B) $25 800
• C) $19 000
• D) $40 600

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Definitions:

Indirect Method

A technique, often used in cash flow statements, that adjusts net income for non-cash transactions to compute cash flow from operating activities.

Net Income

Net Income is the total revenue of a company minus all expenses and taxes, representing the profit earned during a specific period.

Net Cash

The amount of cash a company has after all its cash inflows and outflows have been accounted for, often used in the context of operating, investing, and financing activities.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.