Question

Here is a forecast of sales by National Bromide for the first 4 months of 2019 (figures in thousands of dollars):

Month:	1			2			3			4
Cash sales		30			39			33			29
Sales on credit		175			195			165			145

On average, 60% of credit sales are paid for in the current month, 20% in the next month, and the remainder in the month after that. What are the expected cash collections in months 3 and 4? (Enter your answers in whole dollars not in thousands of dollars.)

Month 3

Month 4

Answer 1

Ans Month 3: $ 206

Month 4: $ 188

Month:	1	2	3	4
Cash sales	30	39	33	29
Sales on credit	175	195	165	145
Cash Collection			33	29
Credit Sales collection
60% in current month			99	87
20% of previous month			39	33
20% of month before previous month			35	39
Total Credit Sales Collection in Cash			173	159
Total Cash Sales			206	188