Forever 39 has found that 30% of its sales are collected in the month of the sale and the remainder of the sales is collected in the next month.If sales are expected to be $100,000 in April, $120,000 in May, and $80,000 in June, what is the estimated amount of cash receipts for May?

Question

Quizplus · Accepted Answer

For May, the cash receipts include 30% of May's sales and 70% of April's sales. May's sales are $120,000, so 30% of that is $36,000. April's sales are $100,000, so 70% of that is $70,000. Adding these together gives $106,000.

Forever 39 Has Found That 30% of Its Sales Are