Utilizing the attached data what are the expected cash collections for months 3 & 4. Show your calculations. On average 50% of credit sales are paid for in the current month, 30% in the next month, and the remaining 20% in the month after that.
|
Month
|
1
|
2
|
3
|
4
|
|
|
|
|
|
|
Cash Sales
|
15
|
24
|
18
|
14
|
|
Credit Sales
|
100
|
120
|
90
|
70
|