The Boat Works Started the Month with $3

question 78

Multiple Choice

The Boat Works started the month with $3.21 million in accounts receivable.Sales for the month were $7.84 million.The firm collects 18% of its sales in the month of sale with the remainder paid the following month.What is the accounts receivable balance at month end?

• A) $4,621,200
• B) $6,428,800
• C) $9,061,000
• D) $1,411,200

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Definitions:

Futures Contracts

An agreement to buy or sell a specified quantity of a commodity or financial instrument at a predetermined price at a specified time in the future.

Profit or Loss

The financial result of a company's operations and activities for a specific period, indicating the difference between revenues and expenses.

Ounce

A unit of weight used primarily in the United States, Canada, and the United Kingdom, equal to one-sixteenth of a pound or about 28.35 grams.

Futures Contracts

Futures contracts are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.