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Sales are 500000 , 40% credit, company will collect 20% of receivable in the first year , 30% second year , 30% third yeer , 20% forth year

Based on these information cash collected in the third year is A-60000 B-40000 C-100000 D-50000

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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/11
rohit mehra
by rohit mehra , Group GM - Finance and accounts , Sun and Sand Group

30% of receivable i.e.40 % of sale

30% of40% =12% of sales 

=60000 is the answer

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Cash Sales =3,00,000

Receivable of First year:0.30*2,00,000=60,000

Receivable of Second year:0.30*2,00,000=60,000

Receivable of Third year:0.20*2,00,000=40,000

Total cash inflow=4,60,000

 

Shidhin.z shidhsaf
by Shidhin.z shidhsaf , Article Assistant , CA JAWAHAR

a-60000

credit sales -200000

first year-40000

second year-60000

third year-60000

last year-40000

Soumya Kanta Nayak
by Soumya Kanta Nayak , Branch Manager , ICICI Bank Ltd

Total Receivable is% of that is A-60000

Malik Waqas
by Malik Waqas , Assistant Manager, Finance and Accounts , Shifa International Hospital Limited

Total sale =500,000 Credit Sale (500,000*.4) =200,000 Cash received on3rd year (200,000*.3) =60,000

Senthil Velu Sivanandam
by Senthil Velu Sivanandam , Accounting Manager , Volume Cocomo

40$ of Credit Sales -200,000. Hence30% of receivables will be60,000 

Muhammad Asad Saleem
by Muhammad Asad Saleem , Senior General Manager Accounts , Frontier Foundry Steel (Pvt) Ltd (FF Steel)

Based on the information cash collected in the third year is60,000

Jessica Yara
by Jessica Yara , Accountant , ESP Management Advisory Services

500000 x40% =200000

200000 x30% =60000

The answer is A-60000

Balasubramaniam Shanmugam
by Balasubramaniam Shanmugam , Deputy Manager , HCL Technologies Ltd

A *40% cr sales200000 *30% is60000

Ahmed Ali Khan Patan
by Ahmed Ali Khan Patan , Chief Accountant , Ducting & Servicing Co. Dasco

The right answer is Option A.60,000/- (40% of500000 is200000 then30% collected in3rd year from it.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Third year collection is30% of the Total credit sales effected i.e.200000.

[Answer option:60000]