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is this right? A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales
is this right?
A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 20% in the month of the sale, 60% in the month following the sale, and 15% in the second month following the sale. Projected sales for January, February, and March are $66,000, \$91,000 and $101,000, respectively. The March expected cash receipts from current and prior credit sales is: Multiple Choice $62,710 $72,810 $67,760 $84,700 $115,200Step by Step Solution
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