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These are the forecasted sales for Garcia, Inc.: Collection pattern: 7 5 percent in month of sale; 2 5 percent in month following the sale

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These are the forecasted sales for Garcia, Inc.:
Collection pattern: 75 percent in month of sale; 25 percent in month following the sale
Accounts Receivable (December 31): $45,000
Finished Goods Inventory (December 31): 32,000
The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20 percent of the next month's sales.
Calculate the amount of cash that Garcia, Inc. expects to collect in February.
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