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:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Cultural Values

The core principles and ideals upon which an entire community exists, influencing its members' behaviors, practices, and beliefs.

Change Efforts

Initiatives or plans undertaken to make transitions or modifications in procedures, policies, or personal behaviors.

Literature

Written works, such as books and articles, that are studied for their artistic, cultural, or intellectual value.