Answer:
The expected cash receipts during September are 40% of the sale in September and 60% of the sales in August.
Explanation:
25% of the credit sales are collected in the month of the sale, this is (25% x 0.8) 20% of the sales are collected in the month of the sale.
20% of the sales are for cash.
Therefore 60% of the sales are collected in the next month.
The expected cash recceipts during the month of the sale (September) are
40% (20% of collected sales and 20% of the sales are for cash) of the sale in September and 60% of the sales in August.
