A Company Has Forecast Sales in the First Three Months

question 20

Multiple Choice

A company has forecast sales in the first three months of the year as follows (figures in millions) : January, $80; February, $60; March, $40. 70 percent of sales are usually paid for in the month that they take place, 20 percent in the following month, and the final 10 percent in the month after that. Receivables at the end of December were $23 million. What are the forecasted collections on accounts receivable in March?

• A)$180 million
• B)$13 million
• C)$40 million
• D)$48 million

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Definitions:

Kinetic Stimulation

The use of motion or activity as a form of therapy to improve mental or physical health.

Gross Motor Coordination

The ability to use large muscles to perform tasks like walking, jumping, and maintaining balance.

Fine Motor Skills

The coordination of small muscle movements usually involving the synchronization of hands and fingers with the eyes.

Voluntarily Grasp

The intentional action of closing the hand and holding onto something, seen as an important motor skill development in infants.