Question

Kaspar Industries expects credit sales for January, February, and March to be $201,600, $269,100, and $318,600,...

Kaspar Industries expects credit sales for January, February, and March to be $201,600, $269,100, and $318,600, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month.

Compute cash collections from customers for each month.

Collections from Customers

Credit Sales

January

February

March
January $enter a dollar amount $enter a dollar amount $enter a dollar amount
February enter a dollar amount enter a dollar amount enter a dollar amount
March enter a dollar amount enter a dollar amount enter a dollar amount
$enter a total amount $enter a total amount $enter a total amount
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Answer #1

Credit sales for the months

January = $ 201600

February = $ 269100

March = $ 318600

(*) 75% of the sales amount collected in the month of sale

(*) 25% of the sales amount collected in the following month of sales

January collections

201600 * 75/100 = $151200

February collections

201600 * 25/100 = 50400 ( 25% of january sales)

269100 * 75/100 = 201825

50400+201825 = $252225

March collections

269100 * 25/100 = 67275

318600 * 75/100 = 238950

67275+238950 = $306225

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