Homework answers / question archive / A) Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale

A) Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale

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A)

Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale.

JanuaryFebruaryMarchApril$ 90,000$ 120,000$ 75,000$ 85,000

Given the sales shown, how much cash will be collected in March and April?

B)

Earthie's Shoes has 55% of its sales in cash and the remaining 45% are credit sales.

Of the credit sales, 70% is collected in the month of sale,

15% is collected the month after the sale,

and 10% is collected the second month after the sale.

How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?