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Please show full solution. Thank you! Limelite Ltd, projects sales for its first three months of operation as follows: January February March Credit Sales $150,000

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Limelite Ltd, projects sales for its first three months of operation as follows: January February March Credit Sales $150,000 $188,000 $176,000 Cash Sales $60,000 $50,000 $55,000 $210,000 $238.000 $231.000 Inventory on 1st January is $40,000. Subsequent beginning inventories should be 40% of that month's cost of goods sold. Goods are priced at 140% of their cost. 50% of purchases are paid for in the month of purchase; the balance is paid in the following month. It is expected that 50% of credit sales will be collected in the month following sale, 30% in the second month following the sale, and the balance the third month. A 5% discount is given if payment is received in the month following sale. What are the anticipated cash receipts for February? $ 107,500 $121.250 $71.250 $238.000

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