The sales manager of EKP Inc. has estimated sales for January, February, March, and April to be $70,000, $75,000, $83,000, and $90,000 respectively. Further, the manager expects that 10% of the sales will be for cash, and the collection of the credit sales will be made as follows: 

Month of sale 60% 

Month following the sale 20% 

Second month following the sale 15% 

The remaining credit sales are uncollectable. 

Please comment on the cash collections for March

Answer rating: 100% (QA)

To estimate cash collections for March we need to consider the sales made in each month and apply th... View the full answer