8) Using the information below, caiculate Party Time Inc.'s totol cash receipts for Januory, Februory,...
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8) Using the information below, caiculate Party Time Inc.'s totol cash receipts for Januory, Februory, and March Of the 11,000 "Pirate Treasure Chests" (party favor boxes) expected to be sold in Q1, 3,000 boxes are expected to be sold in January, 3,500 in February, and 4,500 in March. Each box sells for $5.50, as reflected in the Sales Budget for the year. Sixty percent of the Party Time Inc.'s l are credit sales. Of the credit sales, 52 percent is collected in the month of the sale, 38 percent is collected during the following month, and 10 percent is collected in the second month following the sale. Assume that there were $4,000 of accounts receivable fro last year's sales that will be collected in January Jan Feb. March Cash Sales Credit Sales 52% in mo. of sales 38% next month 10% second month AR rotal Cash Receipts Cash Collected)
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