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Important information about Cash Collections in April

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Question 1:

Sioux Company is estimating the following sales for the first six months of next year:

January $248,000
February $213,000
March $232,000
April $297,000
May $355,000

Sales at Sioux are normally collected as 55% in the month of sale, 41% in the month following the sale, and the remaining 4% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?

$300,470
$258,470
$284,470
$223,470

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The solution explains how to calculate the cash collections in April

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