Question

Month	Sales $	Month	Sales $
Jan	37456	July	39124
Feb	47996	Aug	47148
Mar	47148	Sep	37456
Apr	39124	Oct	47148
May	37456	Nov	47996
June	47996	Dec	39124

Sales are collected as follows:

In the month of Sales: 20%
In the next month: 27%
After 2 months: 7%
After 3 months: remainder is collected

Calculate the cash collection for November.

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Answer 1

The percentage of collection after 3 months = 46% [100% - 20% - 27% - 7%]

Cash collection for November month

Cash collected from August Sales = $21,688.08 [$47,148 x 46%]

Cash collected from September Sales = $2,621.92 [$37,456 x 7%]

Cash collected from October Sales = $12,729.96 [$47,148 x 27%]

Cash collected from November Sales = $9,599.20 [$47,996 x 20%]

Therefore, total cash collection for November month = Cash collected from August Sales + Cash collected from September Sales + Cash collected from October Sales + Cash collected from November Sales

= $21,688.08 + $2,621.92 + $12,729.96 + $ 9,599.20

= $46,639.16

“Total cash collection for November month would be $46,639.16”