A company's history indicates that 30% of its sales are for cash and the rest are on credit. Collections on credit sales are 30% in the month of the sale, 40% in the month following the sale, and 25% in the second month following the sale. Projected sales for January, February, and March are $62,000, $87,000 and $97,000, respectively. 

What is the March expected cash receipts from current and prior credit sales ?

Answer rating: 100% (QA)

To calculate the March expected cash receipts from current and prior credit sales we need to consider the collection patterns for credit sales based o... View the full answer