The following credit sales are budgeted by Gonzalez Company: $$\begin{array} { l r }
\text { January } & \$ 102,000 \
\text { February } & 150,000 \
\text { March } & 210,000
\end{array}$$ The company's past experience indicates that 80% of the accounts receivable are collected in the month of sale, 20% in the month following the sale. The anticipated cash inflow for the month of March is
A) $198,000.
B) $168,000.
C) $210,000.
D) $204,000.

Question

The following credit sales are budgeted by Gonzalez Company: $$\begin{array} { l r } 
\text { January } & \$ 102,000 \
\text { February } & 150,000 \
\text { March } & 210,000
\end{array}$$ The company's past experience indicates that 80% of the accounts receivable are collected in the month of sale, 20% in the month following the sale. The anticipated cash inflow for the month of March is
A) $198,000.
B) $168,000.
C) $210,000.
D) $204,000.

Quizplus · Accepted Answer

80% of the March sales are collected in March ($210,000 x 0.80 = $168,000). 20% of the February sales are collected in March ($150,000 x 0.20 = $30,000). Total cash inflow for March is $168,000 + $30,000 = $198,000.

The Following Credit Sales Are Budgeted by Gonzalez Company January $102,000 February 150,000 March 210,000\begin{array} { l r } \text { January } & \$ 102,000 \\\text { February } & 150,000 \\\text { March } & 210,000\end{array} January February March ​$102,000150,000210,000​

The Following Credit Sales Are Budgeted by Gonzalez Company $\begin{array} { l r } \text { January } & \$ 102,000 \\\text { February } & 150,000 \\\text { March } & 210,000\end{array}$