limerick, Inc: has budgeted total sales for January, February, and March of $800,000, $900,000, and $950,000...

limerick, Inc: has budgeted total sales for January, February, and March of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 40% are collected in the same month as the sale, and 60% are collected during the first month after the sale. Compute the amount of cash received from sales during the month of February.

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	Jan	Feb	March
Sales	$ 800,000	$ 900,000	$ 950,000
Cash sales	$ 200,000	$ 225,000	$ 237,500
Credit Sales	$ 600,000	$ 675,000	$ 712,500

Collection of credit sales
	Jan	Feb	March
Jan	$ 240,000	$ 360,000
Feb		$ 270,000	$ 405,000
March			$ 285,000
Total Sales collected	$ 240,000	$ 630,000	$ 690,000

amount of cash received from sales during the month of February ($225000+630000)	$ 855,000

ekkarill92 answered 1 year ago

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