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.

 January Collections from Customers Credit Sales January February March \$enter a dollar amount \$enter a dollar amount \$enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount \$enter a total amount \$enter a total amount \$enter a total amount

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