Sioux Corporation is estimating the following sales for the first four months of next year: Sales are normally collected 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?
A)$286,500
B)$320,000
C)$192,000
D)$94,500

Question

Sioux Corporation is estimating the following sales for the first four months of next year:  Sales are normally collected 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?
A)$286,500 
B)$320,000 
C)$192,000 
D)$94,500

Quizplus · Accepted Answer

The Answer of Sioux Corporation is estimating the following sales for the first four months of next year:  Sales are normally collected 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?
A)$286,500 
B)$320,000 
C)$192,000 
D)$94,500

Sioux Corporation Is Estimating the Following Sales for the First