Cicero Manufacturing Inc

Multiple Choice

Cicero Manufacturing Inc. sells gloves at local ski resorts during the winter months. Each pair of gloves sells for $15. The following sales forecast (in units) has been prepared for October 2012 through March 2013: Historically, the cash collection of sales has been as follows: 60 percent in the month of sale, 35 percent in the month following sale, and 4 percent in the second month following sale. The remaining 1 percent is uncollectible.
Cash receipts for January are expected to be:

A) $13,170
B) $51,975
C) $10,800
D) $16,530