Acompany's history indicates that 20% of its sales are for cash and the rest are on credit. collections on credit sales are 20% in the month of the sale, 50% in the next month, 25% the following month, and 5% is uncollectible. projected sales for december, january, and february are $60,000, $85,000 and $95,000, respectively. the february expected cash receipts from all current and prior credit sales is:  $57,000  $61,200  $66,400  $80,750  $90,250

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.