Brad Corp Expects to Make Sales of $80 Million in January.In

question 84

Multiple Choice

Brad Corp expects to make sales of $80 million in January.In February forecast sales are $90 million,and in March they are $60 million.On average 50% of sales are paid for in the current month,30% are paid for in the next month,and the remainder in the following month.What is the expected cash flow from operations in March?

• A) $30 million
• B) $60 million
• C) $73 million
• D) $76.7 million

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Definitions:

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a stated amount of an underlying security at a specified price within a specified time.

Sell An Asset

The act of disposing of a property or other investment in exchange for money or other assets.

Owner's Right

The legal entitlements and privileges that come with owning an asset or property, including the right to use, rent, or sell it.

Financial Risk

The possibility of losing money on investments or business operations due to market fluctuations, interest rates, or credit issues.