Question
It is November 1 of Year 1. Sales for Dee Company for November and December of Year 1 and January of Year 2 are forecasted
It is November 1 of Year 1. Sales for Dee Company for November and December of Year 1 and January of Year 2 are forecasted to be as follows:
November, 400,000; December 600,000; January, 200,000
60% of sales are credit sales; the remaining sales are cash sales. Of these credit sales, 5% are collected during the month of sale, 25% in the following month, and 65% in the second following month; 5% are never collected. Totalsales for September and October of Year 1 were 100,000 and 150,000, respectively.
What is the forecasted amount of total cash collectionsin November of Year 1?
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