The sales for January,February,and March are $150,000,$180,000 and $220,000,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; 50% in cash from the previous month's sales; and,10% in cash from the sales from two months ago.What amount of cash will be received during March?

Question

Quizplus · Accepted Answer

For March, the cash received is calculated as follows: 40% of March sales ($220,000 * 40% = $88,000) + 50% of February sales ($180,000 * 50% = $90,000) + 10% of January sales ($150,000 * 10% = $15,000). Adding these amounts gives a total of $88,000 + $90,000 + $15,000 = $193,000.

The Sales for January,February,and March Are $150,000,$180,000 and $220,000,respectively