Happy Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of total sales each month. Historically, sales on account have been collected as follows: 50 percent in the month of the sale, 30 percent in the month after the sale, and the remaining 20 percent two months after the sale. Gross sales for the quarter are projected as follows: January February March Accounts receivable on December 31 were $30,000, Happy's expected cash collections for March would be: Select one: $20,000 $10,000 $40,000

Happy Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of total sales each month. Historically, sales on account have been collected as follows: 50 percent in the month of the sale, 30 percent in the month after the sale, and the remaining 20 percent two months after the sale. Gross sales for the quarter are projected as follows: January February March Accounts receivable on December 31 were $30,000, Happy's expected cash collections for March would be: Select one: $20,000 $10,000 $40,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Happy Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month.
Cash sales are 25 percent of total sales each month. Historically, sales on account have been collected as
follows: 50 percent in the month of the sale, 30 percent in the month after the sale, and the remaining 20
percent two months after the sale.
Gross sales for the quarter are projected as follows:
January
February
March
Accounts receivable on December 31 were $30,000.
Happy's expected cash collections for March would be:
Select one:
OA. $30,250
OB. $32,000
O C. $37,000
OD. $47,200
$20,000
$10,000
$40,000

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