Fin622 Solution 1 July 2010

[Guru]

Solution:



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Calculation:

March

Cash sales = 30%of total sales15000
Credit sales = 70% of total sales 35000
Recovery of credit sales in May = 30% of credit sales = 10500


April

Cash sales = 30% of total sales 18000
Credit sales = 42000
Recovery of credit sales in May = 70% of credit sales = 29400
Recovery of credit sales in June= 30% of credit sales = 12600


May

Cash sales = 30% of total sales 12000
Credit sales = 28000
Recovery or credit sales in June = 70% of credit sales = 19600


June

Cash sales = 30% of total sales 6000