The Lumber Yard has projected sales for April through July of $152,400, $161,800, $189,700, and $196,400, respectively.The firm collects 52 percent of its sales in the month of sale, 46 percent in the month following the month of sale, and the remainder in the second month following the month of sale.What is the amount of the July collections?

Question

Quizplus · Accepted Answer

The July collections include 52% of July sales ($196,400), 46% of June sales ($189,700), and 2% of May sales ($161,800). Calculating these gives: (0.52 * $196,400) + (0.46 * $189,700) + (0.02 * $161,800) = $192,626.

The Lumber Yard Has Projected Sales for April Through July