Answer:
The correct answer is $33,000.
Explanation:
According to the scenario, the given data are as follows:
Jan sales = $30,000
So, Amount collected in March of Jan. = 40% x $30,000 = $12,000
Feb sales = $35,000
So, Amount collected in March of Feb. = 40% x $35,000 = $14,000
Mar. sales = $35,000
So, March cash sales = 20% x $35,000 = $7,000
So, we can calculate the total cash receipts in march by using following formula:
Total cash receipts in march = Amount collected in March of Jan + Amount collected in March of Feb + March cash sales
= $12,000 + $14,000+ $7,000
= $33,000
