Magenta Corporation Has the Following Sales Forecasts for the Selected

question 109

Multiple Choice

Magenta Corporation has the following sales forecasts for the selected three-month period for the current year: $$\begin{array} { l r } \text { Month } & \text { Sales } \\\text { July } & \$ 30,000 \\\text { August } & 15,000 \\\text { September } & 12,000\end{array}$$ All sales are on account. Sixty percent of sales are collected in the month of the sale, and the remainder are collected in the following month. $\begin{array} { l } \text {Accounts receivable balance (July 1) }&\$28,000\\ \text { Cash balance (July 1) }&17,000\\\end{array}$
Minimum cash balance is $13,000. Cash can be borrowed in $2,000 increments from the local bank (assume no interest charges) . What is the cash balance at the end of July, assuming that cash is received only from customers and that $53,000 is paid out during July?

• A)$25,000
• B)$18,500
• C)$20,200
• D)$14,000

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In behavioral psychology, the gradual reduction and eventual disappearance of a conditioned response following the cessation of reinforcement.

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