If Excel Inc

question 86

Multiple Choice

If Excel Inc. has projected sales of $30,000 in January, $20,000 in February, and $20,000 in March, where 80% of sales are on credit, 20% are collected in the month of sale, and 80% are collected the month after, what are the cash receipts in March?

• A) $20,000
• B) $16,000
• C) $21,400
• D) $10,300

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Definitions:

Accurate

A term describing information or measurements that are correct, precise, and free of errors.

Cent

A form of money present in multiple countries, representing one one-hundredth of a decimal currency such as the dollar or euro.

Accurate

The quality of being correct in all details; exactness.

Cent

A monetary unit in various countries, equal to one-hundredth of a basic unit of currency.