Zale,Inc.has provided the following extracts from their budget for the first quarter of the forthcoming year: $$\begin{array} { | l | c | c | c | }
\hline & \text { Jan } & \text { Feb } & \text { March } \
\hline \text { Sales (20\% cash) } & \$ 500,000 & \$ 750,000 & \$ 1,000,000 \
\hline
\end{array}$$ The company collects 70% of credit sales in the same month and the balance in the next month.Calculate the collections from the customers for the month of February.

Question

Zale,Inc.has provided the following extracts from their budget for the first quarter of the forthcoming year: $$\begin{array} { | l | c | c | c | } 
\hline & \text { Jan } & \text { Feb } & \text { March } \
\hline \text { Sales (20\% cash) } & \$ 500,000 & \$ 750,000 & \$ 1,000,000 \
\hline
\end{array}$$ The company collects 70% of credit sales in the same month and the balance in the next month.Calculate the collections from the customers for the month of February.

Quizplus · Accepted Answer

In February, Zale, Inc. collects 20% of February's sales in cash, which is $150,000 (20% of $750,000). They also collect 70% of February's credit sales, which is $420,000 (70% of 80% of $750,000). Additionally, they collect the remaining 30% of January's credit sales, which is $120,000 (30% of 80% of $500,000). Therefore, total collections in February are $150,000 + $420,000 + $120,000 = $690,000.

Zale,Inchas Provided the Following Extracts from Their Budget for the First