Ewing Company budgeted sales for January, February, and March of $96,000, $88,000, and $72,000, respectively. Seventy percent of sales are on credit. The company collects 60% of its credit sales in the month following sale, and 40% in the second month following sale. What are Ewing's expected cash receipts for March related to its current and past sales?
What will be an ideal response?
| March cash sales (30% ? $72,000) …………………… | $21,600 |
| 60% of February credit sales (60% ? 70% ? $88,000) …. | 36,960 |
| 40% of January credit sales (40% ? 70% ? $96,000) …… | 26,880 |
| Total cash collected in March …………………………. | $85,440 |
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