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Lee Carter Inc.'s forecast of sales is as follows: July, $50,000; August, $80,000; September, $150,000. Sales are normally 75 percent cash and 25 percent credit. Credit sales are collected in full in the following month. Merchandise cost averages 70 percent of sales price. The company desires an inventory as of September 30 of $50,000. The inventory as of June 30 was $30,000. The accounts receivable had zero balance on June 30.
Question 1: Find Total cash receipts for August of Lee Carter will be
Option A. $12,500.
Option B. $60,000.
Option C. $47,500.
Option D. $72,500.
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