Answer:
$152,600
Explanation:
Given that,
September sales = $170,000
October sales = $140,000
Monthly sales are 60% credit and 40% cash.
Of the credit sales, 30% are collected in the month of sale, and 70% are collected in the following month.
Cash collections for the month of October:
= 40% of October sales + 30% of the credit sales in October + 70% of the credit sales in September
= (0.4 × $140,000) + (0.3 × 0.6 × $140,000) + (0.7 × 0.6 × $170,000)
= $56,000 + $25,200 + $71,400
= $152,600
