The Harvester collects 55 percent of sales in the month of sale, 40 percent of sales in the month following the month of sale, and 5 percent of sales in the second month following the month of sale. During the month of April, they will collect:

Question

Quizplus · Accepted Answer

In April, the Harvester will collect 40 percent of March sales, as this is the percentage collected in the month following the month of sale. Choices A and E are incorrect as they pertain to sales from February, which would have been collected in March and not April. Choice B is incorrect as it pertains to sales from April, which have yet to be sold and therefore collected. Choice D is incorrect as it pertains to sales from March collected in the second month following the month of sale, which would be May and not April.

The Harvester Collects 55 Percent of Sales in the Month