Innovation Company has furnished the following information:  Forecast sales for 1st month$ 232916Forecast sales for 2nd month$ 459640  Cash sales = 30% of total salesCollection schedule of the sales on credit  In month sold40 %In the next month60 %  What are Innovation Company’s forecast total cash collections for the second month?

To calculate the total cash collections for the second month, we need to consider both the cash sales of the second month and the collections from the credit sales of the first and second months.

Step 1: Calculate the cash sales for the second month Cash sales = Total sales * Cash sales percentage Cash sales = $459,640 * 30$137,892

Step 2: Calculate the collections from credit sales of the first month Credit sales of the first month = Total sales of the first month - Cash sales of the first month Credit sales of the first month = $232,916 - ($232,916 * 30%) = $163,041.2 Collections from credit sales of the first month = Credit sales of the first month * Collection percentage in the next month Collections from credit sales of the first month =$163,041.2 * 60% = $97,824.72

Step 3: Calculate the collections from credit sales of the second month Credit sales of the second month = Total sales of the second month - Cash sales of the second month Credit sales of the second month = $459,640 -$137,892 = $321,748 Collections from credit sales of the second month = Credit sales of the second month * Collection percentage in the month sold Collections from credit sales of the second month =$321,748 * 40% = $128,699.2

Step 4: Add up all the cash collections Total cash collections for the second month = Cash sales of the second month + Collections from credit sales of the first month + Collections from credit sales of the second month Total cash collections for the second month = $137,892 +$97,824.72 + $128,699.2 =$364,415.92

So, Innovation Company’s forecast total cash collections for the second month is $364,415.92.

To calculate the total cash collections for the second month, we need to consider both the cash sales of the second month and the collections from the credit sales of the first and second months.

Step 1: Calculate the cash sales for the second month Cash sales = Total sales * Cash sales percentage Cash sales = $459,640 * 30$137,892

Step 2: Calculate the collections from credit sales of the first month Credit sales of the first month = Total sales of the first month - Cash sales of the first month Credit sales of the first month = $232,916 - ($232,916 * 30%) = $163,041.2 Collections from credit sales of the first month = Credit sales of the first month * Collection percentage in the next month Collections from credit sales of the first month =$163,041.2 * 60% = $97,824.72

Step 3: Calculate the collections from credit sales of the second month Credit sales of the second month = Total sales of the second month - Cash sales of the second month Credit sales of the second month = $459,640 -$137,892 = $321,748 Collections from credit sales of the second month = Credit sales of the second month * Collection percentage in the month sold Collections from credit sales of the second month =$321,748 * 40% = $128,699.2

Step 4: Add up all the cash collections Total cash collections for the second month = Cash sales of the second month + Collections from credit sales of the first month + Collections from credit sales of the second month Total cash collections for the second month = $137,892 +$97,824.72 + $128,699.2 =$364,415.92

So, Innovation Company’s forecast total cash collections for the second month is $364,415.92.