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Calculate the expected cash collections

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Reference no: EM132084383

The forecast of sales for the first four months is

Month            1        2        3          4

Cash Sales-  18        27       21        17

Credit Sales- 115    135     105        85

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.

How do I calculate the  expected cash collections for month 3 and 4

Reference no: EM132084383

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