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Based on these information cash collected in the third year is A-60000 B-40000 C-100000 D-50000
30% of receivable i.e.40 % of sale
30% of40% =12% of sales
=60000 is the answer
Cash Sales =3,00,000
Receivable of First year:0.30*2,00,000=60,000
Receivable of Second year:0.30*2,00,000=60,000
Receivable of Third year:0.20*2,00,000=40,000
Total cash inflow=4,60,000
a-60000
credit sales -200000
first year-40000
second year-60000
third year-60000
last year-40000
Total Receivable is% of that is A-60000
40$ of Credit Sales -200,000. Hence30% of receivables will be60,000
Based on the information cash collected in the third year is60,000
500000 x40% =200000
200000 x30% =60000
The answer is A-60000
The right answer is Option A.60,000/- (40% of500000 is200000 then30% collected in3rd year from it.
Third year collection is30% of the Total credit sales effected i.e.200000.
[Answer option:60000]