Answer:
$105,000
Step-by-step explanation:
Given that,
Sales in November = $100,000
Expected growth rate of sales = 10% each month
50% of sales in the month of sale and 50% the month after sale.
Sales in December = Sales in November + 10% of sales in November
= $100,000 + (0.1 × $100,000)
= $100,000 + $10,000
= $110,000
Therefore, the cash collections in the month of December includes 50% of sales in December and 50% of sales in November.
It is calculated as follows:
= 50% of sales in December + 50% of sales in November
= (0.5 × $110,000) + (0.5 × $100,000)
= $55,000 + $50,000
= $105,000