90.2K

Verified Solution

Link Copied!

It is November of Year $1.$ Sales for a furniture company for November, December, and January $($of Year $2)$ are forecasted to be as follows:

November: $$200,000$

December: $$600,000$

January: $$100,000$

$70\%$ of sales are credit sales; the remaining sales are cash sales. Of these credit sales, $5\%$ are collected during the month of sale, $25\%$ in the following month, $65\%$ in the second following month, and $5\%$ are never collected.

Total sales $($cash and credit$)$ for September, Year $1$: $$200,000$

October, Year $1$: $$300,000$

What is the forecasted amount of total cash collections in January?

A$.$ $$229,500$

B$.$ $$312,500$

C$.$ $$210,500$

D$.$ $$216,000(35)$ It is November $1$ of Year $1.$ Sales for a furniture company for November,

Dexember, and Jianuary $($of Year $2)$ are foretastexi to be is follows:

November: $$200,000$

December: $$600,000$

January: $$100,000$

$70\%$ of sales are credit sales; the remaining sales are cash sales. Of these credit

sales, $5\%$ are collectest during, the month of salk, $25\%$ in the following, month,

$65\%$ in the second following month, and $5\%$ are never collected.

Total sales $/$cash and credit$)$:

September, Year $1$:$$200,000$

Octaber, Year $1$: $$300,000$

What is the forecasted arnount of total ash collections irn January?

$$229,500$

$$312,500$

$$210,500$

$$216,000$

Answer & Explanation Solved by verified expert

See Answer