16.

CalebCaleb

Company projects the following sales:

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(Click on the icon to view the projected sales.)

CalebCaleb

collects sales on account in the month after the sale. The Accounts Receivable balance on

JanuaryJanuary

1 is

$ 13 comma 100$13,100,

which represents

DecemberDecember's

sales on account.

CalebCaleb

projects the following cash receipts from customers:

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(Click on the icon to view the cash receipts from customers.)Recalculate cash receipts from customers if total sales remain the same but cash sales are only

1010%

of the total.

Begin by computing the cash sales and sales on account for each month if cash sales are only

1010%

of the total.

	January	February	March
Cash sales (10%)	2700	2400	3200
Sales on account (90%)	24300	21600	28800
Total sales	$27,000	$24,000	$32,000

Now, recalculate cash receipts from customers for each month if cash sales are only

1010%

of the total.

	January	February	March
Cash receipts from cash sales	2700	2400	3200
Cash receipts from sales on account
Total cash receipts from customers