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Saturday, July 25, 2015

Joanie Corp sells it products on both credit and cash basis

Joanie Corp sells it products on both credit and cash basis. Monthly sales are sold 10% for cash, 90% for credit. Credit sales are collected 40% in the month of sale and 60% the following month. Sales for the first quarter are as follows:

January $100,000
February $150,000
March $125,000

Compute cash collections for February.

Click here for the solution: Joanie Corp sells it products on both credit and cash basis