Hernandez Company expects credit sales for January to be $100,000. Cash sales are expected to be $60,000. The company expects credit and cash sales to increase 10% for the month of February. Credit sales are collected in the month following the month in which sales are made. Based on this information the amount of cash collections in February would be:

The correct answer is $166,000.

Explanation:

According to the scenario, the given data are as follows:

Credit sales for Jan. = $100,000

Cash sales for Jan. = $60,000

cash sales to increase in Feb = 10%

So, we can calculate the cash collection in Feb by using following method:

Cash collection in Feb = Cash Sales for Feb + Credit sales for Jan.

= ( $60,000 × 110%) + $100,000

= $66,000 + $100,000

= $166,000

the best way to learn how to declare a major is to talk to a admissions office.

answer makes less frequent trips to the bank and firms make less frequent price changes;