The sales for January, February, and March are $150,000, $180,000 and $220,000, respectively. For any particular month of sales, the following percentages are received over time in cash: 40% in cash from that same month of sales; 50% in cash from the previous month's sales; and, 10% in cash from the sales from two months ago. What amount of cash will be received during March?

Question

Esteban

Business

3 June, 20:04

The sales for January, February, and March are $150,000, $180,000 and $220,000, respectively. For any particular month of sales, the following percentages are received over time in cash: 40% in cash from that same month of sales; 50% in cash from the previous month's sales; and, 10% in cash from the sales from two months ago. What amount of cash will be received during March?

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Answers (1)

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Murray · Answer 1

Total cash = $193,000

Explanation:

Giving the following information:

Estimated sales ($):

January = $150,000

February = $180,000

March = $220,000

40% in cash from that same month of sales

50% in cash from the previous month's sales

10% in cash from the sales from two months ago

Cash collection March:

From March = 220,000*0.4 = 88,000

From February = 180,000*0.5 = 90,000

From January = 150,000*0.1 = 15,000

Total cash = $193,000