A Company Has Forecast Sales in the First 3 Months

question 2

Multiple Choice

A company has forecast sales in the first 3 months of the year as follows (figures in millions) : January, $90; February, $20; March, $30. 70% of sales are usually paid for in the month that they take place and 30% in the following month. Receivables at the end of December were $20 million. What are the forecasted collections on accounts receivable in March?

• A) $27 million
• B) $50 million
• C) $23 million
• D) $35 million

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Definitions:

Swerve

To change direction suddenly, often to avoid a collision or an obstacle.

Mixed Strategies

In game theory, a strategy that allows for the randomization of choices among different options to achieve a certain outcome.

Pure Strategies

In game theory, a pure strategy is an action chosen by a player where they select a specific move to follow in every possible situation within a game.

Dominant Strategy

A strategy in game theory that yields the best outcome for a player, regardless of what the other players do.