A Company Has Forecast Sales in the First 3 Months

question 4

Multiple Choice

A company has forecast sales in the first 3 months of the year as follows (figures in millions) : January, $60; February, $80; March, $100. 60% of sales are usually paid for in the month that they take place and 40% 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:

μ

A symbol often used to represent the mean or average value of a set of numbers in statistics.

Average Waiting Time

The average time that a customer or item spends waiting in a queue before being served.

μ

Typically represents the mean of a population in statistics, or the average arrival or service rate in queuing theory contexts.