The following credit sales are budgeted by Gonzalez Company: $$\begin{array} { l r }
\text { January } & \$ 170,000 \
\text { February } & 250,000 \
\text { March } & 350,000
\end{array}$$ The company's past experience indicates that 80% of the accounts receivable are collected in the month of sale, 20% in the month following the sale. The anticipated cash inflow for the month of March is

Question

The following credit sales are budgeted by Gonzalez Company: $$\begin{array} { l r } 
\text { January } & \$ 170,000 \
\text { February } & 250,000 \
\text { March } & 350,000
\end{array}$$ The company's past experience indicates that 80% of the accounts receivable are collected in the month of sale, 20% in the month following the sale. The anticipated cash inflow for the month of March is

Quizplus · Accepted Answer

In March, 80% of March sales ($350,000) are collected, which is $280,000. Additionally, 20% of February sales ($250,000) are collected, which is $50,000. Total cash inflow for March is $280,000 + $50,000 = $330,000.

The Following Credit Sales Are Budgeted by Gonzalez Company January $170,000 February 250,000 March 350,000\begin{array} { l r } \text { January } & \$ 170,000 \\\text { February } & 250,000 \\\text { March } & 350,000\end{array} January February March ​$170,000250,000350,000​

The Following Credit Sales Are Budgeted by Gonzalez Company $\begin{array} { l r } \text { January } & \$ 170,000 \\\text { February } & 250,000 \\\text { March } & 350,000\end{array}$