Silly Sally, Inc.
Silly Sally, Inc. forecasts the following sales levels: January, $420; February, $435; March, $450; and April, $470. Historically, 40% of its sales are for cash. Of the remaining sales, 80% are collected in one month, 15% are collected in the second month, while the rest remain uncollected. November sales were $380 and December sales were $500. (all values $000)
Purchases are made at 60% of the next month's sales forecast, and are paid for in the month of purchase. Other cash outlays are: rent, $10 monthly; wages and salaries, $50 monthly; a tax payment of $30 in March; an interest payment of $15 in March; and a planned purchase of $20 of new fixed assets in January.
-Refer to Silly Sally,Inc.What is the forecasted amount to be collected from cash sales in March?

Question

Quizplus · Accepted Answer

March sales are forecasted to be $450,000. Since 40% of sales are for cash, the amount collected from cash sales in March would be 40% of $450,000, which is $180,000.

Silly Sally, Inc. Silly Sally, Inc. Forecasts the Following Sales Levels: January, $420;