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Question - Your Company will open a new store on January 1. Based on experience from its other retail outlets, Entertainment Inc. is making the following total sales predictions for the first four months. Eighty-five percent of total sales are on credit.
Total sales
January $60,000
February $70,000
March $80,000
April $90,000
Your Company estimated that the pattern of collection of creditsales will be 45% in the month of sale and 40% in the month following the sale; 10% in the third month, the remaining 5% is uncollectable. What is the estimated total cash collections for April?
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