A Company Has Forecast Sales in the First 3 Months

question 5

Multiple Choice

A company has forecast sales in the first 3 months of the year as follows (figures in millions) : January, $80; February, $60; March, $40. 70% of sales are usually paid for in the month that they take place, 20% in the following month, and the final 10% in the next month. Receivables at the end of December were $23 million. What are the forecasted collections on accounts receivable in March?

• A) $180 million
• B) $13 million
• C) $40 million
• D) $48 million

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Definitions:

Denmark Vesey

A freed slave in the early 19th century who planned a large slave rebellion in Charleston, South Carolina, in 1822. The plot was discovered before it could be executed, leading to Vesey's execution.

American Influences

The various cultural, political, and economic impacts that the United States has had and continues to have on the global stage.

African Influences

The impact, contributions, and cultural elements that people of African descent have imparted globally across various fields such as music, art, language, cuisine, and religion.

Haitian Slave Revolt

A successful insurrection by enslaved Africans in Saint-Domingue (now Haiti) beginning in 1791, which led to the abolition of slavery there and the establishment of the Republic of Haiti.