Use the information below to answer the following questions.
Sales in December were $960,000. Projected sales for the first quarter of 2015 are:
January $1,080,000
February $1,200,000
March $1,280,000
Sales are 20% cash and 80% on credit. Debtors pay in the month following the sale.
-Refer to the table above. Calculate the total cash sales for the three months, January, February and March.

Question

Use the information below to answer the following questions.
Sales in December were $960,000. Projected sales for the first quarter of 2015 are: 
January $1,080,000
February $1,200,000
March $1,280,000
Sales are 20% cash and 80% on credit. Debtors pay in the month following the sale.
-Refer to the table above. Calculate the total cash sales for the three months, January, February and March.

Quizplus · Accepted Answer

Total sales for the three months = $1,080,000 + $1,200,000 + $1,280,000 = $3,560,000
Cash sales are 20% of total sales = 0.2 x $3,560,000 = $712,000.

Use the Information Below to Answer the Following Questions