As of January 1 of the Current Year,the Grackle Company

question 61

Multiple Choice

As of January 1 of the current year,the Grackle Company had accounts receivables of $50,000.The sales for January,February,and March were as follows: $120,000,$140,000,and $150,000,respectively.Of each month's sales,20% are for cash.Of the remaining 80% (the credit sales) ,60% are collected in the month of sale,with the remaining 40% collected in the following month.What is the total cash collected (both from accounts receivable and cash sales) in the month of March?

• A) $74,800
• B) $146,800
• C) $102,000
• D) $116,800

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, used to fund the production of goods and services or to pay for investments.

Outstanding Debt

The total amount of debt that a company or individual owes that has not yet been paid.

Nondiversifiable Risk

A type of risk inherent to the entire market or market segment that cannot be eliminated through diversification.

Beta

A financial metric that measures the volatility, or systemic risk, of a stock or portfolio compared to the market as a whole.