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