ACME Inc,Bills Its Clients on the First of the Month

question 102

Multiple Choice

ACME Inc.,bills its clients on the first of the month.For example,any sale made in the month of July is billed August 1 and is due September 1.Clients traditionally pay as follows: 70% by the end of the first month (August) ,20% by the end of the second month (September) ,9% by the end of the third month (October) ,and 1% default on their bills.The firm's CEO wants to know the anticipated cash flow for April.Use the following information to estimate April cash flows. $$\begin{array} { | l | l | l | l | l | l | } \hline & { \text { First-Quarter Actual Sales } } & && { \text { Second-Quarter Anticipated Sales } } \\\hline \text { January } & \text { February } & \text { March } & \text { April } & \text { May } & \text { June } \\\hline \$ 88,000 & \$ 74,000 & \$ 96,000 & \$ 99,000 & \$ 82,000 & \$ 63,000 \\\hline\end{array}$$

• A)$94,000
• B)$81,600
• C)$84,640
• D)$89,920

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Characteristics or qualities considered morally good or desirable in a person, such as integrity, courage, honesty, and compassion.

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The quality of being truthful, trustworthy, and sincere in one's words and actions.