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? Secure https://newconnect.mheducation.com/flow/connect.ntmi Help Save &ExitSubmit; at O Saved Wichita Industries' sales are 10% for cash and 90% on credit. Credit sales are collected as follows: 40% in the month of sale, 50% in the next month, and 10% in the following month. On December 31, the accounts receivable balance includes $26,000 from November sales and $45,000 from December sales. Assume that total sales for January and February are budgeted to be $64,000 and $128,000, respectively. What are the expected cash receipts for February from current and past sales? Multiple Choice $41600. $95180. $36.300 $51700 $62,300

Explanation / Answer

Ans. Option 2nd $95,180 *Calculation: December credit sales 7500 January credit sales 28800 February credit sales 46080 February cash sales 12800 Total 95180 *December credit sales: December total sales (45000 / (100% - 40%) 75000 December Credit sales =   75000 * 10% 7500 The given amount is on 60%     (100% - 40%) so we have to calculate the total sales i.e. 75000   [45000/60*100] *January Credit sales: January total sales * 90% * 50% 64000 * 90% * 50% 28800 *February Credit sales: February total sales * 90% * 40% 128000 * 90% * 40% 46080 *February Cash sales: February total sales * 10% 128000 * 10% 12800

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