Pews for You in the New Year

It is January 1 of Year 2.

Sales for Pews for You for January, February, and March are forecasted to be as follows:

January $200,000

February $400,000

March, $500,000

20% of sales are cash salesand 80%of sales are credit sales

Of the credit sales, 10% are collected during the month of sale, 30% in the following month, and 60% in the second following month.

TOTAL sales for November and December of Year 1 were $200,000 and $400,000, respectively.

1. What is the forecasted amount oftotalcash collections from sales inMarch for pews for you?

• $327,000
• $294,000
• $302,000
• $288,000
• $316,000
• $332,000
• $276,000

2. Based on the above information can you forecast April's total cash collections?

**Can you please show your work if you solve it. I have gotten two different results and I'd like to see where I am going wrong.

Thank you!