Ingalls Mercantile Inc.sells bolts of fabric to retailers for $80 per bolt.The company's accountant has prepared the following sales forecast (in bolts)for the first quarter of 2009:
$\begin{array}{lr}
\text { January } & 600 \text { bolts } \
\text { February } & 1000 \text { bolts } \
\text { March } & 700 \text { bolts }
\end{array}$
Historically,the cash collection of sales has been as follows: 60 per cent in the month of sale,30 per cent in the month following sale,and 9 per cent in the second month following sale.
Cash receipts for March are expected to be:

Question

Ingalls Mercantile Inc.sells bolts of fabric to retailers for $80 per bolt.The company's accountant has prepared the following sales forecast (in bolts)for the first quarter of 2009:
$\begin{array}{lr}
\text { January } & 600 \text { bolts } \
\text { February } & 1000 \text { bolts } \
\text { March } & 700 \text { bolts }
\end{array}$ 
Historically,the cash collection of sales has been as follows: 60 per cent in the month of sale,30 per cent in the month following sale,and 9 per cent in the second month following sale.
Cash receipts for March are expected to be:

Quizplus · Accepted Answer

Cash receipts for March include 60% of March sales, 30% of February sales, and 9% of January sales. Calculating: (60% of 700 bolts * $80) + (30% of 1000 bolts * $80) + (9% of 600 bolts * $80) = $33,600 + $24,000 + $4,320 = $61,920.

Ingalls Mercantile Inc Historically,the Cash Collection of Sales Has Been as Follows: 60