Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: Jan Feb March Sales (25 % cash) $ 400 comma 000.00 $ 600 comma 000.00 $ 900 comma 000.00 The company collects 70 % of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February.

Question

Hanna Howell

Business

15 June, 03:10

Camellia, a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: Jan Feb March Sales (25 % cash) $ 400 comma 000.00 $ 600 comma 000.00 $ 900 comma 000.00 The company collects 70 % of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February.

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Savion · Answer 1

555 000 US$

Explanation:

Cash sales (25%) Credit sales (75%)

January (400,000*25%) = 100000 (400,000-100000) = 300,000

February (600,000*25%) = 150,000 (600,000-150,000) = 450,000

Customer collections to the month of February.

= $150,000 + ($450,000 * 0.7) + ($300,000*0.3)

(Balance collections = (100 - 70) = 30%)