Cringle Company expects sales as follows: $$\begin{array} { l r }
\text { January } & \$ 150,000 \
\text { February } & 180,000 \
\text { March } & 210,000 \
\text { April } & 170,000
\end{array}$$ Sales are made 30% for cash, and 70% on credit. Credit sales are collected 40% in the month of sale and 60% in the next month. How much were cash collections in March?

Question

Cringle Company expects sales as follows: $$\begin{array} { l r } 
\text { January } & \$ 150,000 \
\text { February } & 180,000 \
\text { March } & 210,000 \
\text { April } & 170,000
\end{array}$$ Sales are made 30% for cash, and 70% on credit. Credit sales are collected 40% in the month of sale and 60% in the next month. How much were cash collections in March?

Quizplus · Accepted Answer

Cash collections in March include 30% of March sales ($63,000) and 60% of February's credit sales ($75,600), totaling $138,600.

Cringle Company Expects Sales as Follows Sales Are Made 30% for Cash, and 70% on Credit