The Following Credit Sales Are Budgeted by Terra Co The Company's Past Experience Indicates That 70% of the Accounts

question 106

Multiple Choice

The following credit sales are budgeted by Terra Co.: $$\begin{array} { l r } \text { January } & \$ 204,000 \\\text { February } & 300,000 \\\text { March } & 420,000 \\\text { April } & 360,000\end{array}$$ The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale 20% in the month following the sale and 8% in the second month following the sale.The anticipated cash inflow for the month of April is

• A)$370320.
• B)$336000.
• C)$360000.
• D)$352800.

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Definitions:

Regulatory Commission

A government body responsible for enforcing specific laws and regulations covering economic and social policy areas.

Nondiscriminating

Fair treatment not based on preconceived biases or prejudices.

Marginal Cost

The extra production cost for creating an additional unit of a good or service.

Average Total Cost

Represents the total cost of production (fixed plus variable costs) divided by the total quantity produced, indicating the cost per unit of output.