Jumbotron Inc

question 57

Multiple Choice

Jumbotron Inc. had sales of $8,000 in November, $14,000 in December, and projects sales of $10,000 for January, $12,000 for February, and $8,000 for March. The firm's cost of goods sold
Every month is equal to 70% of the next month's sales. The firm collects its receivables in 60 days
And pays its payables in 30 days. The firm begins January 1 with $10,000 in cash. All sales and
Purchases are on credit.
What is Jumbotron's cash balance at the end of March?

• A) $12,000
• B) $14,600
• C) $16,600
• D) $18,100
• E) $21,000

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Definitions:

Homogenous Goods

Products that are essentially identical, where each unit is the same as every other unit in terms of attributes and quality.

Nash Equilibrium

A concept within game theory where the optimal outcome of a game is one where no player has an incentive to deviate from their chosen strategy after considering an opponent's choice.

Price Competition

A market condition where businesses compete primarily on the price of their products or services rather than quality or innovation.

Competitive Equilibrium

A state where supply equals demand within a competitive market, setting the equilibrium price and quantity.