D & F expects sales of £620, £650, £730 and £780 for the months of April through to July, respectively.The ﬁrm collects 20% of sales in the month of sale, 50% in the month following the
Month of sale and 28% in the second month following the month of sale.The remaining 2% of sales
Is never collected.How much money does the ﬁrm expect to collect in the month of July?

Question

Quizplus · Accepted Answer

In July, the firm expects to collect 20% of July sales (£780), 50% of June sales (£730), and 28% of May sales (£650). Calculation: (0.20*780) + (0.50*730) + (0.28*650) = £156 + £365 + £182 = £703.

D & F Expects Sales of £620, £650, £730 and £780