A consultancy firm has two types of clients, small and large. 69% of clients are small.

Historical patterns of billing receipts are presented as follows:

	Small clients	Large clients
During month of service	20%	10%
During month following service	50%	40%
During second month following service	20%	40%
Uncollectable	10%	10%

Sales forecast in the second half of the year is as follows:

Month	Estimated amount
July	$4,500,000
August	5,000,000
September	5,500,000
October	5,700,000
November	5,800,000
December	5,500,000

What is the expected amount of cash received in December

Answer rating: 100% (QA)

To find the expected amount of cash received in December well calculate the cash collections from sales made in various months considering the histori... View the full answer