A company's history indicates that 20% of its sales are for cash and the rest are on credit.  Collections on credit sales are 20% in the month of the sale, 50% in the next month, 25% the following month, and 5% is uncollectible. Projected sales for December, January, and February are $60,000, $85,000, and $95,000, respectively.  The February expected cash receipts from all current and prior credit sales are

A. $61,200
B. $57,000
C. $66,400
D. $90,250


Answer: A

Business

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