Answer:
$927,300
Explanation:
Calculation for expected cash collections for February
First step is to calculate January sales cash collection
January sales cash collections=[(7500 units * $110 per unit)*70%]
January sales cash collections = $825,000*70%
January sales cash collections=$577,500
Second step is to calculate February sales cash collections
February sales cash collections=[( 10,600 units * $110 per unit)*30%]
February sales cash collections= $1,166,000 × 30%
February sales cash collections= $349,800
Now let calculate the expected cash collections for February using this formula
February expected cash collections=January sales cash collections+February sales cash collections
Let plug in the formula
February expected cash collections =$577,500+$349,800
February expected cash collections=$927,300
Therefore the expected cash collections for February is closest to: $927,300
