Sales collection policy of a company is '20% sales are on cash, 50% of the credit sales are collected next month and the balance in the following month'. The Collection for the month of March will be :

CS Executive · Financial and Strategic Management · PYQS · June 2023
Sales collection policy of a company is '20% sales are on cash, 50% of the credit sales are collected next month and the balance in the following month'. The Collection for the month of March will be :
(A) 20% of Jan sales + 40% of February sales + 40% of March sales
(B) 20% of February sales + 50% of January sales + 50% of March sales
(C) 20% of March sales + 40% of January sales + 40% of February sales
(D) 20% of March sales + 50% of January sales + 50% of February sales

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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