Matterhorn, Inc. had the following sales for the past six months. Matterhorn collects its credit...

Question:

Matterhorn, Inc. had the following sales for the past six months. Matterhorn collects its credit sales 30% in the month of sale, 60% one month after the sale, and 10% two months after the sale.

 Cash Sales Credit Sales January $50,000$50,000 February $70,000$110,000 March $55,000$95,000 April $78,000$130,000 May $80,000$105,000 June $75,000$148,000

What are Matterhorn's total cash receipts for the month of March?

Cash collection:

Cash collection refers to the receipt of cash from the sales made by the company. It is given as the cash sales plus the collection from sales made in the current period plus the collection from sales made in any of the previous periods.

Cash receipts for March
= Cash sales of March + 30% of credit sales of March + 60% of credit sales of February + 10% of Credit sales of January
= 55,000 + 95,000 x 30% + 110,000 x 60% + 50,000 x 10%
= \$154,500.00