The following credit sales are budgeted by Gonzalez Company: $$\begin{array} { l l }
\text { February } & 150,000 \
\text { March } & 210,000 \
\text { April } & 180,000
\end{array}$$ The company's past experience indicates that 80% of the accounts receivable are collected in the month of sale, 20% in the month following the sale. The anticipated cash inflow for the month of April is
A) $144,000.
B) $168,000.
C) $180,000.
D) $186,000.

Question

The following credit sales are budgeted by Gonzalez Company: $$\begin{array} { l l } 
\text { February } & 150,000 \
\text { March } & 210,000 \
\text { April } & 180,000
\end{array}$$ The company's past experience indicates that 80% of the accounts receivable are collected in the month of sale, 20% in the month following the sale. The anticipated cash inflow for the month of April is
A) $144,000.
B) $168,000.
C) $180,000.
D) $186,000.

Quizplus · Accepted Answer

80% of April sales ($180,000) is collected in April, which is $144,000. 20% of March sales ($210,000) is collected in April, which is $42,000. Total inflow for April is $144,000 + $42,000 = $186,000.

The Following Credit Sales Are Budgeted by Gonzalez Company February 150,000 March 210,000 April 180,000\begin{array} { l l } \text { February } & 150,000 \\\text { March } & 210,000 \\\text { April } & 180,000\end{array} February March April ​150,000210,000180,000​

The Following Credit Sales Are Budgeted by Gonzalez Company $\begin{array} { l l } \text { February } & 150,000 \\\text { March } & 210,000 \\\text { April } & 180,000\end{array}$