A company's history indicates that 20% of its sales are for cash and the remaining 80% are on credit. Collections on credit sales are 30% in the month of the sale and 70% the following month. Projected sales for January, February, and March are $75,000, $92,000 and $60,000, respectively. The March expected cash receipts are $80,500.

Question

Quizplus · Accepted Answer

The question provides the March expected cash receipts, but the question is asking for the expected cash receipts in January, February, and March. Without additional information, we cannot determine the expected cash receipts for January and February. Therefore, the answer is false.

A Company's History Indicates That 20% of Its Sales Are