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Flag As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March of 2012 were as follows: $120,000, $140,000 and $150,000. 20% of each months sales are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of february

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Respuesta :

anthougo

Answer:

Grackle Company

The total cash collected (both from accounts receivable and for cash sales) in the month of february is:

= $133,600.

Explanation:

a) Data and Calculations:

January 1, Accounts receivables = $50,000

January 2012, Sales = $120,000

February 2012, Sales = $140,000

March 2012, Sales = $150,000

                                   January       February       March

Sales                         $120,000    $140,000     $150,000

20% Cash Sales          24,000        28,000         30,000

80% Credit Sales        96,000        112,000       120,000

Cash Collections:

20% Cash Sales          24,000        28,000        30,000

60% month of sale     57,600         67,200        72,000

40% following month 50,000        38,400         44,800

Total collections      $131,600     $133,600     $146,800