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Primo Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of total sales each
Primo Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of total sales each month. Historically, sales on account have been collected as follows: 50 percent in the month of the sale, 30 percent in the month after the sale, and the remaining 20 percent two months after the sale. Total sales for the quarter are projected as follows: January $20,000 February $10,000 March $40,000 Primo's expected cash collections for March would be: $37,000 $20,250 $30,250 $27,000
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