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CTP · Question #792

(Topic 8) A company plans to perform an A/R cash analysis based on the following sales information: 60% of sales are collected within two months after the sale. After three months, $135,000 of…

The correct answer is B. 30%. See the full explanation below for the reasoning.

Question

  • (Topic 8)

A company plans to perform an A/R cash analysis based on the following sales information:

60% of sales are collected within two months after the sale. After three months, $135,000 of January's sales has been collected. What was the percentage of January's sales collected in April?

Options

  • A10%
  • B30%
  • C60%
  • D90%

How the community answered

(29 responses)
  • A
    10% (3)
  • B
    83% (24)
  • C
    7% (2)

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