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Wichita Industries' sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 60% in
Wichita Industries' sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 30% in the month of sale, 60% in the next month, and 10% in the second following month. Wichita Industries' had $30,000 from November sales and $35,000 from December sales. Assume that total sales for January and February are budgeted to be $68,000 and $136,000, respectively. What are the expected cash receipts for February from current and past sales?
A. $92,040.
B. $71,720.
C. $58,320.
D. $41,720.
E. $50,320.
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