The forecasted sales pertain to Skifurn, Inc.:
|
Month
|
Sales
|
|
January
|
mce_markernbsp; 900,000
|
|
February
|
1,000,000
|
|
March
|
600,000
|
|
April
|
400,000
|
Collection pattern: 70 percent in month of sale; 30 percent in month following the sale
Accounts Receivable (December 31): $140,000
Finished Goods Inventory (December 31): 160,000
The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20 percent of the next month's sales.
Calculate the amount of cash that Skifurn expects to collect in February?