Exhibit 15-1
You are working to forecast the cash disbursements for a manufacturing company. Sales are forecasted to be $175,000, $200,000, $225,000, and $250,000 for January, February, March, and April, respectively. The firm purchases 25% of each amount in cash and will then pay 70% of the credit purchase in the month following the purchase with the remainder paid in full two months after the purchase.
-Refer to Exhibit 15-1.What is the amount of February sales to be collected in March for the company?
A) $206,625
B) $105,000
C) $56,250
D) none of the above
Correct Answer:
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