The Following Credit Sales Are Budgeted by Gonzalez Company $$\begin{array} { l l } \text { February } & 150,000 \\\text { March } & 210,000 \\\text { April } & 180,000\end{array}$$

question 28

Multiple Choice

The following credit sales are budgeted by Gonzalez Company: $$\begin{array} { l l } \text { February } & 150,000 \\\text { March } & 210,000 \\\text { April } & 180,000\end{array}$$ The company's past experience indicates that 80% of the accounts receivable are collected in the month of sale, 20% in the month following the sale. The anticipated cash inflow for the month of April is

• A) $144,000.
• B) $168,000.
• C) $180,000.
• D) $186,000.

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Definitions:

Exponential Smoothing Model

A time series forecasting technique that applies weighting factors which decrease exponentially to past observations.

Mean Absolute Percentage Error

A measure used in statistics to assess the accuracy of a forecast or prediction, calculated as the average of absolute percentages of errors between predicted and observed values.

Smoothing Constant

A smoothing constant is a parameter in exponential smoothing used to control the level of smoothing applied to a time series.

Holt-Winters Additive Model

A forecasting technique that applies weighted averages and seasonality to predict future data points.