A Company Has Forecast Sales in the First Three Months

question 22

Multiple Choice

A company has forecast sales in the first three months of the year as follows (figures in millions) : January,$200; February,$140; March,$100.50% of sales are usually paid for in the month that they take place,30% in the following month,and the final 20% in the month after that.Receivables at the end of December were $100 million.What are the forecasted collections on accounts receivable in March?

• A)$132 million
• B)$100 million
• C)$240 million
• D)$92 million

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Definitions:

Self-sealing

Characterizes materials or devices capable of automatically closing or repairing themselves after being punctured or cut.

Free Ends

The extremities or terminals of a linear structure, such as a piece of DNA or a thread, that are not attached or bonded to anything else.

Hydrophobic

Characteristic of molecules that repel water; substances that are not easily soluble in water.

Hydrophilic

A term describing molecules or substances that have an affinity for water, making them capable of dissolving in or being wetted by water.