The sales for October, November and December are $20,000, $22,000 and $28,000, respectively. For any particular month of sales, the following percentages are received over time in cash: 40% in cash from that same month of sales; 40% 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 December?

$24,000

Explanation:

Cash from credit sales is collected with passage of time. Some amount is collected with the sale and some after the sale period. The cash collection for the current month may include the collection against the prior periods sales.  

Cash Collection Schedule is prepared in an MS Excel File which is attached with this answer, Please find it.

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