A Company Has Forecast Sales in the First Three Months

question 51

Multiple Choice

A company has forecast sales in the first three months of the year as follows (figures in millions) : January, $60; February, $80; March, $100. 60 percent of sales are usually paid for in the month that they take place and 40 percent in the following month. Receivables at the end of December were $24 million. What are the forecasted collections on accounts receivable in March?

• A)$88 million
• B)$92 million
• C)$100 million
• D)$140 million

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Definitions:

Sedimentary Clasts

Fragments or grains of rock or mineral that have been broken from a pre-existing rock and transported, eventually being deposited as sedimentary rock.

Steepness Of Slope

A measure of the inclination of a surface or a line in relation to the horizontal plane, significant in determining the speed and direction of water flow and erosion.

Agents Of Transport

Forces or mechanisms that move sediment or particles from one location to another, such as water, wind, ice, and gravity.

Rock Types

The classification of rocks into three major groups: igneous, sedimentary, and metamorphic, based on their formation process.