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Question - The Company has projected the following sales for the spring quarter of 2014:
April $200,000
May $250,000
June $275,000
65% of all sales are paid for with cash. The remainder is on credit.
The pattern for credit receivables collections are:
Month of sale 60%
Month after sale 30%
Second month after sale 10%
Required - What are the forecasted cash collections for the month of June?
a. $178,750
b. $248,750
c. $269,750
d. $275,000
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