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24 June, 22:44

Astor Manufacturing has the following budgeted sales: January $120,000, February $180,000, and March $150,000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month. The total expected cash receipts during March are:

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  1. 24 June, 23:10
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    Total cash = $159,000

    Explanation:

    Giving the following information:

    Sales:

    January $120,000

    February $180,000

    March $150,000

    40% of the sales are for cash and 60% are on credit.

    For credit sales, 50% are collected in the month of sale, and 50% the next month.

    Cash collection March:

    Sales in cash = 150,000*0.4 = 60,000

    Sales on account:

    From March = (150,000*0.6) * 0.5 = 45,000

    From Fecruary = (180,000*0.6) * 0.5 = 54,000

    Total cash = $159,000
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