A Company's History Indicates That 20% of Its Sales Are

question 7

Multiple Choice

A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 20% in the month of the sale, 50% in the next month, 25% the following month, and 5% is uncollectible. Projected sales for December, January, and February are $60,000, $85,000, and $95,000, respectively. The February expected cash receipts from all current and prior credit sales is:

• A) $61,200
• B) $57,000
• C) $66,400
• D) $90,250

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Definitions:

Coronal

A term used to describe a plane or section that divides the body into front (anterior) and back (posterior) parts.

Midsagittal

Relating to a plane that divides the body into equal right and left halves.

Transverse

Positioned or extending across something, typically at a right angle to the longest dimension.

Frontal

Pertaining to the forehead or the frontal bone of the skull.