The sales for October,November and December are $20,000,$22,000 and $28,000,respectively.For any particular month of sales,the following percentages are received over time in cash: 40% in cash from that same month of sales; 40% in cash from the previous month's sales; and,20% in cash from the sales from two months ago.What amount of cash will be received during December?
A)$24,000
B)$18,000
C)$9,600
D)$9,000

Question

Quizplus · Accepted Answer

In December, the cash received will be: 40% of December sales ($28,000) + 40% of November sales ($22,000) + 20% of October sales ($20,000). This equals $11,200 (from December) + $8,800 (from November) + $4,000 (from October) = $24,000.

The Sales for October,November and December Are $20,000,$22,000 and $28,000,respectively