**Math Problem - Cash Collection Schedule****Question 31**You collect 80% of each month's sales in one month following the sale and 20%, the remainder, two months following the sale. If your sales are budgeted to be:| | January | February | March ||-------|---------|----------|-------|| Sales | $100,000 | $120,000 | $140,000 |**What would be your amount for cash collected from customers in March?**- **80% Collection Explanation**: This represents the proportion of sales collected the month immediately following the sale month.- **20% Collection Explanation**: This represents the proportion of sales collected two months after the sale month.To solve this:1. **Collection from January Sales in March**: - 20% of January sales is collected in March. - January sales: $100,000. - 20% of $100,000: 0.20 * $100,000 = $20,000.2. **Collection from February Sales in March**: - 80% of February sales is collected in March. - February sales: $120,000. - 80% of $120,000: 0.80 * $120,000 = $96,000.3. **Collection from March Sales in April**: - Since collection happens in the month following the sale, March collections will be 80% in April and remaining 20% in May.Adding all collections from January and February provides total cash collections for March:**Total Collections in March = January’s 20% collection + February’s 80% collection****Total Collections in March = $20,000 + $96,000 = $116,000****Answer:**For cash collected from customers in March, the amount is **$116,000**.

Budgeted cash collections is the estimate of amount of money that will be received in a future…

You collect 80% of each month's sales in one month following the sale and 20%, the remainder, two months following the sale. If your sales are budgeted to be: February $120,000 March $140,000 What would be your amount for cash collected from customers in March? January $100,000

You collect 80% of each month's sales in one month following the sale and 20%, the remainder, two months following the sale. If your sales are budgeted to be: February $120,000 March $140,000 What would be your amount for cash collected from customers in March? January $100,000

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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