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XYZ Company expects the following sales and collection pattern for the first 4 months of the year. Month Cash Sales Credit Sales Total Sales January
XYZ Company expects the following sales and collection pattern for the first 4 months of the year.
Month
Cash Sales
Credit Sales
Total Sales
January
$12,000
$23,000
$35,000
February
$8,000
$22,000
$30,000
March
$9,000
$25,000
$34,000
April
$11,000
$28,000
$39,000
5% of credit sales are collected in the same month.
75% of sales are collected in the following month.
15% of sales are collected in the second following month.
What are the projected cash collections for the month of March?
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