The Following Credit Sales Are Budgeted by Gonzalez Company $\begin{array}{ll}\text { February } & 200,000 \\\text { March } & 280,000 \\\text { April } & 240,000\end{array}$

question 18

Multiple Choice

The following credit sales are budgeted by Gonzalez Company: $\begin{array}{ll}\text { February } & 200,000 \\\text { March } & 280,000 \\\text { April } & 240,000\end{array}$ The company's past experience indicates that 80% of the accounts receivable are collected in the month of sale, 20% in the month following the sale. The anticipated cash inflow for the month of April is

• A)$172,800.
• B)$201,600.
• C)$216,000.
• D)$248,000.

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Definitions:

Accounts Receivable

Accounts receivable refers to the money owed to a company by its customers for goods or services delivered but not yet paid for.

Forward Contract

A personalized deal between two counterparties to execute the sale or purchase of an asset at a set price on a future date agreed upon.

Fair Value

An estimate of the market value of an asset or liability; it is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much one country's currency is worth in another country's currency.