Question

Pace Company has the following plan information available for 2019: Month Total Sales January $166,000 February $150,000 March $136,000 April $182,000 May $152,000 June $135,000 July $110,000 The normal pattern of cash collections on sales is 10% in the month of the sale, 50% in the month following the sale and 40% in the second month following the sale. The expected total cash collections for May should be

Answer 1

the expected total cash collections for May is $160,600

Step-by-step explanation:

The computation of the expected total cash collections for May is given below

= 10% of $152,000 + 50% of $182,000 + 40% of $136,000

= $15,200 + $91,000 + $54,400

= $160,600

Hence, the expected total cash collections for May is $160,600

The same should be considered