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: October 500 November 800 December 1,000 January 1,200 February 900 March 600 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
D
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