00:01
So for this problem, we're going to make a table and walk through the first three months that are listed to determine how much cash they're expecting to get in march.
00:14
So to make this table, i'm going to do month.
00:20
Sales.
00:22
These are all my titles for each column.
00:25
Cash.
00:29
Accounts receivable.
00:33
And then collected and ending balance.
00:44
Okay, so for the month we'll have january, february, and march.
00:54
Sales, we have 120, and i'm just going to do 120k for 120 ,000 for the whole table, just to save space and make it clear to see.
01:09
Okay, so from here, we're told that cash is received at 40 % of sales, so for january, it would be 48 ,000.
01:21
For february, it would be 72 ,000.
01:27
And for march, it would be 60 ,000.
01:30
And i'm just multiplying the sales by 40%.
01:34
And then we're told accounts receivable is the remaining 60%.
01:39
So i'm going to take the 120 in sales and multiply it by 60%, which gives me 72 ,000.
01:47
For january, 108 ,000 for february, and 90 ,000 for march.
01:57
Okay, so from here i'm going to do each month specifically.
02:00
So we collect, here let me rewrite that.
02:10
That's a little better...