The sales for October, November and December are $2,000, $6,000 and $10,000, respectively. For any particular month of sales the following percentages are received over time in cash for any given month: 50% in cash from that same month of sales; 30% 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) $8,200
B) $7,600
C) $7,200
D) $6,600

Question

Quizplus · Accepted Answer

To find the cash received during December, we need to calculate the cash received from October and November sales first.

Cash received from October sales = 50% of $2,000 = $1,000
Cash received from November sales = (30% of $6,000) + (20% of $2,000) = $1,800

Now, for December sales:
Cash received from December sales = 50% of $10,000 = $5,000
Cash received from November sales = 30% of $6,000 = $1,800
Cash received from October sales = 20% of $2,000 = $400

Total cash received during December = $5,000 + $1,800 + $400 = $7,200.

Therefore, the answer is (C) $7,200.

The Sales for October, November and December Are $2,000, $6,000