A Company's Past Experience Indicates That 60% of Its Credit $$\begin{array} { l r } \text { January } & \$ 360,000 \\\text { February } & 216,000 \\\text { March } & 540,000\end{array}$$

question 22

Multiple Choice

A company's past experience indicates that 60% of its credit sales are collected in the month of sale 30% in the next month and 5% in the second month after the sale; the remainder is never collected. Budgeted credit sales were: $$\begin{array} { l r } \text { January } & \$ 360,000 \\\text { February } & 216,000 \\\text { March } & 540,000\end{array}$$ The cash inflow in the month of March is expected to be

• A) $406800.
• B) $307800.
• C) $324000.
• D) $388800.

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Definitions:

Income

The financial gain received by an individual or entity, typically through work, investments, or other revenue sources.

Pretzels

Salted or unsalted baked snacks known for their twisted knot shape, originating from Europe.

Lemonade

A sweetened beverage made from lemon juice, water, and sugar, often consumed as a refreshing drink.

Gallons

A unit of volume used primarily in the United States for measuring liquids, equivalent to 3.785 liters.