Salich Manufacturing Corporation has provided the following sales budget information: Cash sales are normally 40% of total sales and the credit sales are expected to be collected in their entirety in the month following the month of sale. The amount of cash expected to be received from customers in September is:

Question

Salich Manufacturing Corporation has provided the following sales budget information:  Cash sales are normally 40% of total sales and the credit sales are expected to be collected in their entirety in the month following the month of sale. The amount of cash expected to be received from customers in September is:

Quizplus · Accepted Answer

The total sales for September are $142,500 ($95,000 + 47,500). 
Cash sales are normally 40% of total sales, so cash sales for September are $57,000 (40% of $142,500). 
Credit sales are expected to be collected in their entirety in the month following the month of sale, so they are not relevant to the cash expected to be received in September. Therefore, the amount of cash expected to be received from customers in September is $57,000.

Salich Manufacturing Corporation Has Provided the Following Sales Budget Information