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The Forecasted Sales Pertain to Yong, Inc Collection Pattern: 70 Percent in Month of Sale; 30 Percent

Question 62

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The forecasted sales pertain to Yong, Inc.:
 Month  Sales  January $450,000 February 500,000 March 300,000 April 200,000\begin{array} { l r } \underline{\text { Month }} & \underline{\text { Sales }} \\\text { January } & \$ 450,000 \\\text { February } & 500,000 \\\text { March } & 300,000 \\\text { April } & 200,000\end{array} Collection pattern: 70 percent in month of sale; 30 percent in month following the sale
Accounts Receivable (December 31): $70,000
Finished Goods Inventory (December 31): 80,000
The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20 percent of the next month's sales.
Calculate the amount of cash that Yong expects to collect in February?

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