A Company Has Forecast Sales in the First Three Months

question 31

Multiple Choice

A company has forecast sales in the first three months of the year as follows (figures in millions) : January, $60; February, $80; March, $100.Sixty percent of sales are usually paid for in the month that they take place and 40 percent in the following month.Receivables at the end of December were $24 million.What are the forecasted collections on accounts receivable in March?

• A)$88 million
• B)$92 million
• C)$100 million
• D)$140 million

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Definitions:

Pericardium

A double-layered sac surrounding the heart, providing protection and reducing friction during heart movements.

Deoxygenated Blood

Blood carrying a lower concentration of oxygen, typically returning to the heart and lungs for oxygenation.

Left Ventricle

The chamber of the heart that receives oxygenated blood from the left atrium and pumps it out to the body through the aorta.

Thoracic Cage

The bony frame around the chest composed of the ribs, sternum, and thoracic vertebrae, protecting the heart and lungs.