The sales for January, February, and March are $2,000, $6,000 and $10,000, respectively

For any particular month of sales the following percentages are received over time in cash for any given month: 50% in cash from that same month of sales; 30% in cash from the previous month's sales; and 20% in cash from the sales from two months ago. What amount of cash will be received during March?
A) $8,200
B) $7,600
C) $7,200
D) $6,600


Answer: C
Explanation: C) Cash received during or by the end of March is: 0.5 × March Sales + 0.3 × February Sales + 0.2 × January Sales = 0.5 × $10,000 + 0.3 × $6,000 + 0.2 × $2,000 = $5,000 + $1,800 + $400 = $7,200.

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