A company's history indicates that 25% of its sales are for cash and the rest are on credit. Collections on credit sales are 25% in the month of the sale, 45% in the month following the sale, and 20% in the second month following the sale. Projected sales for January, February, and March are $61,000, $86,000 and $96,000, respectively. The March expected cash receipts from current and prio credit sales is: Multiple Choice $46,575 $65,775 $56, 175 $74,900 $81,900

A company's history indicates that 25% of its sales are for cash and the rest are on credit. Collections on credit sales are 25% in the month of the sale, 45% in the month following the sale, and 20% in the second month following the sale. Projected sales for January, February, and March are $61,000, $86,000 and $96,000, respectively. The March expected cash receipts from current and prio credit sales is: Multiple Choice $46,575 $65,775 $56, 175 $74,900 $81,900

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Page Company makes 30% of its sales for cash and 70% on account. 60% of the credit sales are collected in the month of sale, 25% in the month following sale, and 11% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year: Month 1 2 3 4 Total sales $74,000 $90,000 $66,000 $44,000 Total cash receipts in Month 4 will be: Multiple Choice $36,960. $64,900. $50,160. $48,600.
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