A company collects 60% of its sales during the month of thesale, 30% o

QUESTION

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) $
Sales collectionprocedure: 60% of sales collected in the month of sales 30% sales will be collected in the next 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%

llection 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

ANSWER:

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