Question

Hernandez Company expects credit sales for January to be $43,000. Cash sales are expected to be $23,000. The company expects credit and cash sales to increase 10% for the month of February. Credit sales are collected in the month following the month in which sales are made. Based on this information, the amount of cash collections in February would be:

Answer 1

the cash collections in the month of Feb is $68,300

Step-by-step explanation:

The computation of the cash collections in the month of Feb is as follows:

= Cash sales × 110% + credit sales

= $23,000 × 110% + $43,000

= $25,300 + $43,000

= $68,300

hence, the cash collections in the month of Feb is $68,300

We simply applied the above formula so that the correct value could come

And, the same is to be considered