The Following Credit Sales Are Budgeted by Gonzalez Company $$\begin{array} { l r } \text { January } & \$ 170,000 \\\text { February } & 250,000 \\\text { March } & 350,000\end{array}$$

question 172

Multiple Choice

The following credit sales are budgeted by Gonzalez Company: $$\begin{array} { l r } \text { January } & \$ 170,000 \\\text { February } & 250,000 \\\text { March } & 350,000\end{array}$$ The company's past experience indicates that 80% of the accounts receivable are collected in the month of sale 20% in the month following the sale.The anticipated cash inflow for the month of March is

• A)$330000.
• B)$280000.
• C)$350000.
• D)$340000.

---

Definitions:

Planning Budget

A budget that outlines the expected revenues, expenses, and resources over a specific period, often used as a financial roadmap.

Flexible Budget

A budget that adjusts or flexes for changes in the volume of activity, providing a more useful comparison against actual costs than a static budget.

Actual Activity

The real or factual actions or tasks completed within a period, often measured to assess performance or productivity.

Static Budget

A financial plan that does not change or adjust with variations in business activity levels.