Calculate the cash collections from sales for the month of


The following is the sales budget for Caradoc Cycle Car Inc., for the first quarter 2014:

January $206,000, February $226,000, and March $249,000.

Credit sales are collected as follows:

55 percent in the month of the sale

30 percent in the month after the sale

15 percent in the second month after the sale

The accounts receivable balance at the end of the previous quarter was $90,000 ($60,000 of which was uncollected December sales).

Calculate the cash collections from sales for the month of February.

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Accounting Basics: Calculate the cash collections from sales for the month of
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