Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be:

$ 115,400

Step-by-step explanation:

Complete question is:

Budgeted sales in Allen Company over the next four months are given below: September              October                 November            December               $160,000                             $180,000                $120,000             $100,000

Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be:

Cash collection in December for the month of October= 0.2 ×0.7 ×180000= 25200

Cash collected in Decmber for the month of November= 0.7×0.3×120000=252000

Cash collected in December for the month of December= 0.5×0.7×100000 + 0.3 × 100000= 65,000

Total cash collected in the month of December= 65,000+25,200 + 25,200= $ 115,400

for the first question it would be the second answer for the second question it would be the third answer and for the third question it would be the first answer

step-by-step explanation: