The Lumber Yard has the following projected sales. The firm collects 50 percent of its sales in the month of sale,47 percent in the month following the month of sale,and another 2 percent in the second month following the month of sale.The firm never collects 1 percent of its sales.What is the amount of the July collections?

Question

The Lumber Yard has the following projected sales.  The firm collects 50 percent of its sales in the month of sale,47 percent in the month following the month of sale,and another 2 percent in the second month following the month of sale.The firm never collects 1 percent of its sales.What is the amount of the July collections?

Quizplus · Accepted Answer

July collections = (0.50 × $179,500) + (0.47 × $177,900) + (0.02 × $164,600) = $176,655

The Lumber Yard Has the Following Projected Sales