A Company Has Forecast Sales in the First 3 Months

question 44

Multiple Choice

A company has forecast sales in the first 3 months of the year as follows (figures in millions) : January, $200; February, $140; March, $100. 50% of sales are usually paid for in the month that they take place, 30% in the following month, and the final 20% in the next month. Receivables at the end of December were $100 million. What are the forecasted collections on accounts receivable in March?

• A) $132 million
• B) $100 million
• C) $240 million
• D) $92 million

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Definitions:

Facility Consideration

Factors that are taken into account when selecting or designing a physical location for operations.

Distribution Facilities

Physical locations such as warehouses and distribution centers where goods are stored, managed, and dispatched to retailers or customers, playing a critical role in the supply chain.