Answer:
Cash received for August= $50,000
Explanation:
The sales below were given
August $200,000
September $210,000
October $220,500
The cash sales per month is 25% of total sales and the credit portion is carried over to the next month when cash is received.
As we are calculating cash inflow for August there is no carryover cash from previous month (August is the first month)
Cash received for August= 0.25* 200,000
Cash received for August= $50,000
The remaining sales is on credit 200,000-50,000= $150,000
And will be received in September.
