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

question 92

Multiple Choice

The following credit sales are budgeted by Garcia Company: $$\begin{array} { l r } \text { January } & \$ 306,000 \\\text { February } & 450,000 \\\text { March } & 630,000 \\\text { April } & 540,000\end{array}$$ 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 March is

• A)$555480.
• B)$504000.
• C)$540000.
• D)$529200.

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Definitions:

Repression

An unconscious mechanism employed by the ego to keep disturbing or threatening thoughts from becoming conscious.

Sigmund Freud

A neurologist from Austria who initiated the method of psychoanalysis, which is a therapeutic technique used to address mental disorders through conversational interactions between a psychoanalyst and their patient.

Serial-Position Effect

A phenomenon in memory that suggests that when learning a list, people tend to remember the first and last items better than those in the middle.

Alphabet

A set of letters or symbols in a fixed order used to represent the basic sounds of a language, particularly for writing.