Mikhail Corporation Has the Following Sales Forecasts for the First

question 45

Multiple Choice

Mikhail Corporation has the following sales forecasts for the first three months of 2018: $$\begin{array} { l r } \text { Month } & \text { Sales } \\\text { January } & \$ 36,000 \\\text { February } & 24,000 \\\text { March } & 40,000\end{array}$$ Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following month. $\begin{array}{lr}\text { Accounts receivable balance (January 1, 2018) } & \$ 16,000 \\\text { Cash balance (January 1,2018) } & 12,000\end{array}$ Minimum cash balance is $20,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges) . How much cash would be collected in March from sales?

• A)$32,000
• B)$58,400
• C)$48,000
• D)$34,400