A Company's History Indicates That 20% of Its Sales Are

Multiple Choice

A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 20% in the month of the sale, 50% in the next month, 25% the following month, and 5% is uncollectible. Projected sales for December, January, and February are $60,000, $85,000, and $95,000, respectively. The February expected cash receipts from all current and prior credit sales is:

A) $61,200
B) $57,000
C) $66,400
D) $90,250