A Company Has Forecast Sales in the First Three Months

question 15

Multiple Choice

A company has forecast sales in the first three months of the year as follows (figures in millions) : January, $80; February, $60; March, $40.Seventy percent of sales are usually paid for in the month that they take place, 20 percent in the following month, and the final 10 percent in the month after that.Receivables at the end of December were $23 million.What are the forecasted collections on accounts receivable in March?

• A)$180 million
• B)$13 million
• C)$40 million
• D)$48 million

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