Star Company projected unit credit sales for the last four months of the year as shown below:

September	3,000
October	3,200
November	4,100
December	5,600

The company's past records show collection of credit sales as 60% in the month of sale and the balance in the following month. If inventory units are sold for $25, the total cash collections on receivables in November will be

Explanation

October	3,200	units		.4	=	1,280	units
November	4,100	units		.6	=	2,460	units
Total						3,740	units		$	25	=	$	93,500

WHY did we multiply Oct by .4 and nov by .6??