Hernandez Company expects credit sales for January to be $100,000.Cash sales are expected to be $60,000.The company expects credit and cash sales to increase 10% for the month of February.Credit sales are collected in the month following the month in which sales are made.Based on this information,the amount of cash collections in February would be:

Question

Quizplus · Accepted Answer

In February, cash collections include January's credit sales ($100,000) and February's cash sales ($66,000, which is $60,000 increased by 10%). Total cash collections = $100,000 + $66,000 = $166,000.

Hernandez Company Expects Credit Sales for January to Be $100,000