Miller Metalworks had sales in November of $60,000, in December of $40,000, and in January of $80,000. Miller collects 40% of sales in the month of the sale and 60% one month after the sale. Calculate Miller's cash receipts for January.

Question

Quizplus · Accepted Answer

In January, Miller collects 40% of January sales ($80,000 * 40% = $32,000) plus 60% of December sales ($40,000 * 60% = $24,000). Adding these together gives $32,000 + $24,000 = $56,000.

Miller Metalworks Had Sales in November of $60,000, in December