Question
Jazzy Janitors has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are
Jazzy Janitors has found that only 10% of its invoiced amounts are paid in the same month that the work is completed. Sixty percent are paid in the month after the work is completed and 30% are paid in the second month after the work is completed. During December 2013, Jazzy Janitors invoiced $200,000 to clients. Projected revenues for the first six months of 2014 are given below:
Month Revenue
January $180,000
February 215,000
March 220,000
April 218,000
May 240,000
June 255,000
What are the expected cash receipts for April, 2014?
A. $218,300
B. $242,300
C. $153,800
D. $21,800
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