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A company concludes the following sales forecast for the first four month in operation: Cash sales...... Credit Sales... Jan Feb Mar 15,000 24,000 18,000
A company concludes the following sales forecast for the first four month in operation: Cash sales...... Credit Sales... Jan Feb Mar 15,000 24,000 18,000 Apr 18,000 100,000 120,000 90,000 70,000 On average, 25% of credit sales are paid for in the month of the sales, 70% in the month following the sale, and the remainder is paid two months after the sale. What is the expected cash collection in April? a) 104,500 b) 100,000 c) 92,500 d) 99,500
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