Use this information for questions 20, 21 and 22 Limelite Ltd, a retail store, 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 Total sales $210,000 $238,000 $231,000 Inventory on 1 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. Question 20 What are the anticipated cash receipts for February? - a. $71,250 b. $238,000 C. None of these $107,500 $121,250 2020 Exam Question 21 What are the anticipated cash disbursements for January? a. None of these b. $150,000 C. $68,000 $89,000 $178,000 Question 22 What is the projected cost of goods sold for January? a. $140,000 b. None of these C . $188,000 $150.000 e. $84,000Dec Jan Feb Mar Credit sales 150000 188000 176000 Cash sales 60000 50000 55000 Total sales 210000 238000 231000 Beginning inventory 40000 68000 66000 Ending inventory 0 Cost of goods sold 150000 170000 165000 Paid in that month 75000 85000 82500 Paid following month 75000 85000 82500 Credit sales in the month 50% 75000 94000 88000 Credit sales followting mounth 30% 45000 56400 52800 Credit sales third month 20% 30000 37600 35200 5% discount in that month(Cash sales+ credit sales) 3750 4700 4400 0 0 5% discount in that month only credit saels? 0 Cash receipts 60000 121250 189300 Cash payments 75000 Total cash flow -15000 121250 189300 0