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Wichita Industries' sales are 20% for cash and 80% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in
Wichita Industries' sales are 20% for cash and 80% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the second following month. Wichita Industries' had $20,000 from November sales and $56,000 from December sales. Assume that total sales for January and February are budgeted to be $58,000 and $116,000, respectively. What are the expected cash receipts for February from current and past sales?
o $46,400. o $66,400. o $83,200. o $39,200. o $59,200Step by Step Solution
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