Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: $\begin{array}{ccccc}
&\text { Dec. Year } 1 &\text { Jan. Year } 2 &\text { Feb. Year } 2 &\text { Mar. Year }\
&\text { (Actual) }&\text {(Budgeted) }&\text {(Budgeted) }&\text {(Budgeted) }\
\text { Credit sales } & \$ 120,000 & \$ 280,000 & \$ 310,000 & \$ 220,000 \
\text { Cash sales } & \$ 20,000 & \$ 50,000 & \$ 60,000 & \$ 24,000
\end{array}$ Based on the company's collection history, 42% of credit sales are collected in month of sale and the remainder is collected in the following month. Total budgeted cash receipts in February are expected to be:

Question

Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: $\begin{array}{ccccc}
&\text { Dec. Year } 1 &\text { Jan. Year } 2 &\text { Feb. Year } 2 &\text { Mar. Year }\
&\text { (Actual) }&\text {(Budgeted) }&\text {(Budgeted) }&\text {(Budgeted) }\
\text { Credit sales } & \$ 120,000 & \$ 280,000 & \$ 310,000 & \$ 220,000 \
\text { Cash sales } & \$ 20,000 & \$ 50,000 & \$ 60,000 & \$ 24,000 
\end{array}$  Based on the company's collection history, 42% of credit sales are collected in month of sale and the remainder is collected in the following month. Total budgeted cash receipts in February are expected to be:

Quizplus · Accepted Answer

In February, cash receipts include 42% of February's credit sales ($310,000 * 42% = $130,200), 58% of January's credit sales ($280,000 * 58% = $162,400), and February's cash sales ($60,000). Total = $130,200 + $162,400 + $60,000 = $352,600.

Oakton Furniture Provided the Following Information Relevant to Its Sales