Day: April 8, 2023

Alex Ltd’s sales revenue is split as follows:

25% cash sales
75% credit sales payable in one month

Total projected sales for Alex Ltd for the following months are shown in the table below:

• January – £30,000
• February – £32,000
• March – £40,000

What will be the cash receipts in March?

Select ONE answer:

1. £10,000
2. £24,000
3. £34,000
4. £40,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – £40k * 0.25 + £32k * 0.75
4. Not correct

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