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 current and prior credit sales is:

A) $57,000
B) $61,200
C) $66,400
D) $80,750
E) $90,250