question archive A company collects 60% of its sales during the month of thesale, 30% one month after the sale, and 10% two months after thesale
A company collects 60% of its sales during the month of thesale, 30% one month after the sale, and 10% two months after thesale
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A company collects 60% of its sales during the month of thesale, 30% one month after the sale, and 10% two months after thesale. The company expects sales of $10,000 in August, $20,000 inSeptember, $30,000 in October, and $40,000 in November. How muchmoney is expected to be collected in October?
a) $25,000
b) $15,000
c) $35,000
d) none of the above
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Answer:
| Sales collectionprocedure: | ||||
| 60% of sales collected in themonth of sales | ||||
| 30% sales will be collected in thenext month | ||||
| 10% sales will be collected after two months | ||||
| Auguest | September | October | November | |
| 60% collection | 10000*60% = 6000 | 20000*60% = 12000 | 30000*60% = 18000 | 40000*60% = 24000 |
| 30% collection | 10000*30% = 3000 | 20000*30% = 6000 | 30000*30% = 9000 | |
| 10% collection | 10000*10% = 1000 | 20000*10% = 2000 | ||
| Total of octobercollection=18000+6000+1000 | ||||
| = $25000 | ||||
| So, the answer will be (a) $25000 | ||||
