SalaRita's sales are 32% cash and 68% credit. Of the credit sales, 40% of credit sales are collected in the month of sale, 45% in the month following the sale, and 15% is collected two months after. Budgeted sales data is as follows: $$\begin{array} { l r }
\text { June } & \$ 200,000 \
\text { July } & 120,000 \
\text { August } & 150,000
\end{array}$$ How much is total cash collected during August?

Question

SalaRita's sales are 32% cash and 68% credit. Of the credit sales, 40% of credit sales are collected in the month of sale, 45% in the month following the sale, and 15% is collected two months after. Budgeted sales data is as follows: $$\begin{array} { l r } 
\text { June } & \$ 200,000 \
\text { July } & 120,000 \
\text { August } & 150,000
\end{array}$$ How much is total cash collected during August?

Quizplus · Accepted Answer

In August, cash collected includes: 32% of August sales in cash ($150,000 * 0.32 = $48,000), 40% of August credit sales ($150,000 * 0.68 * 0.40 = $40,800), 45% of July credit sales ($120,000 * 0.68 * 0.45 = $36,720), and 15% of June credit sales ($200,000 * 0.68 * 0.15 = $20,400). Total = $48,000 + $40,800 + $36,720 + $20,400 = $145,920.

SalaRita's Sales Are 32% Cash and 68% Credit June $200,000 July 120,000 August 150,000\begin{array} { l r } \text { June } & \$ 200,000 \\\text { July } & 120,000 \\\text { August } & 150,000\end{array} June July August ​$200,000120,000150,000​

SalaRita's Sales Are 32% Cash and 68% Credit $\begin{array} { l r } \text { June } & \$ 200,000 \\\text { July } & 120,000 \\\text { August } & 150,000\end{array}$