Answer:
Total cash collection= $2,681
Explanation:
Giving the following information:
Sales:
April= $1,800
May= $2,400
June= $2,700
July= $2,900
The firm collects 25 percent of its sales in the month of sale, 60 percent in the month following the month of sale, and another 14 percent in the second month following the month of sale.
Cash collection July:
From July= (2,900*0.25)= 725
From June= (2,700*0.60)= 1,620
From May= (2,400*0.14)= 336
Total cash collection= $2,681
