Question

Here is a forecast of sales by National Bromide for the first 4 months of 2015 (figures in thousands of dollars): Month: 1 2 3 4 Cash sales 33 42 36 32 Credit sales 190 210 180 160 On average, 50% of credit sales are paid for in the current month, 30% in the next month, and the remainder in the month after that. What are the expected cash collections in months 3 and 4? (Enter your answers in whole dollars.) Expected cash collections Month 3 $ Month 4 $

Answer 1

Answer:

Consider the following calculations

Explanation:

Month 3: $36,000 + (0.5 × $180,000) + (0.3 × $210,000) + (0.2 × $190,000) = $227,000

Month 4: $32,000 + (0.5 × $160,000) + (0.3 × $180,000) + (0.2 × $210,000) = $208,000