Del Carpio,Inc.,sells two products,Widgets and Gadgets.The sales forecast in units for the first quarter of the coming year is:
Cash sales are 30% of each product's monthly sales.The remaining sales are credit sales which are collected as follows:
70% in the month of sale,20% the next month,and 10% in the following month.Unit sale prices are $30 and $20 for Widgets and Gadgets,respectively.
Determine the company's cash receipts for March from its current and past sales.

Question

Del Carpio,Inc.,sells two products,Widgets and Gadgets.The sales forecast in units for the first quarter of the coming year is:
  Cash sales are 30% of each product's monthly sales.The remaining sales are credit sales which are collected as follows:
 70% in the month of sale,20% the next month,and 10% in the following month.Unit sale prices are $30 and $20 for Widgets and Gadgets,respectively.
Determine the company's cash receipts for March from its current and past sales.

Quizplus · Accepted Answer

The Answer of Del Carpio,Inc.,sells two products,Widgets and Gadgets.The sales forecast in units for the first quarter of the coming year is:
  Cash sales are 30% of each product's monthly sales.The remaining sales are credit sales which are collected as follows:
 70% in the month of sale,20% the next month,and 10% in the following month.Unit sale prices are $30 and $20 for Widgets and Gadgets,respectively.
Determine the company's cash receipts for March from its current and past sales.