Question

Forty percent of a firm’s sales are collected during the first month after the sale; 35% are collected during the second month following the sale; 20% are collected during the third month following the sale; 5% are collected during the fourth month. What cash is collected in July from May’s sales, which totaled $75,000?

$15,000
$3,750
$30,000
$26,250

Answer 1

$26,250

Step-by-step explanation:

If may sales were $75,000

July collection for may sales will be?

May..... sales month

June... first month after sales

July ... second month fater sales..of which 35 % is collected

July's collection will be 35/100 x 75,000

=0.35 x$75,000

=$26,250