Fashion Jeans, Inc. sells two lines of jeans; Simple Life and Fancy Life. Simple
ID: 2381225 • Letter: F
Question
Fashion Jeans, Inc. sells two lines of jeans; Simple Life and Fancy Life. Simple Life sells for $85.00 a pair and Fancy Life sells for $100.00 a pair. The company sells all of its jeans on credit and estimates that 60% is collected in the month of the sale, 35% is collected in the following month, and the rest is considered to be uncollectible. The estimated sales for Simple are as follows: January 20,000 jeans, February 27,500 jeans, and March 25,000 jeans. The estimated sales for Fancy are as follows: January 18,000 jeans, February 19,000, and March 20,500 jeans. What are the expected cash receipts for the month of March? a. $2,125,000 b. $4,175,000 c. $2,505,000 d. $3,988,125 Fashion Jeans, Inc. sells two lines of jeans; Simple Life and Fancy Life. Simple Life sells for $85.00 a pair and Fancy Life sells for $100.00 a pair. The company sells all of its jeans on credit and estimates that 60% is collected in the month of the sale, 35% is collected in the following month, and the rest is considered to be uncollectible. The estimated sales for Simple are as follows: January 20,000 jeans, February 27,500 jeans, and March 25,000 jeans. The estimated sales for Fancy are as follows: January 18,000 jeans, February 19,000, and March 20,500 jeans. What are the expected cash receipts for the month of March? a. $2,125,000 b. $4,175,000 c. $2,505,000 d. $3,988,125Explanation / Answer
d. $3,988,125-answer
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Total Sale Collection in March
Jan 1,700,000 -
Feb 2,337,500 818,125
Mar 2,125,000 1,275,000
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Fancy
Jan 1,800,000 -
Feb 1,900,000 665,000
Mar 2,050,000 1,230,000
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Total Cash collected 3.988,125
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