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Astor Manufacturing has the following budgeted sales: January $80,000, February$120,000, and March $100,000. 40% of the sales are for cash and 60% are on credit. Forthe credit sales, 50% are collected in the month of sale, and 50% the next month. Thetotal expected cash receipts during March are:

Respuesta :

Answer:

$106,000

Explanation:

Expected cash receipts during March

= Cash sales of March + 50% March credit sales + 50% February credit sales

Cash sales of March = 40% *100,000

50% March credit sales = 50%* (100,000*60%)

50% February credit sales =50% *(120,000*60%)

Total = (40% * 100,000) + 50% *(100,000*60%) + 50% * (120,000*60%)

        = 40,000 + 30,000 + 36,000

          = $ 106,000