A Company Has Forecast Sales in the First Three Months

question 32

Multiple Choice

A company has forecast sales in the first three months of the year as follows (figures in millions) : January, $90; February, $20; March, $30.Seventy percent of sales are usually paid for in the month that they take place and 30 percent in the following month.Receivables at the end of December were $20 million.What are the forecasted collections on accounts receivable in March?

• A)$27 million
• B)$50 million
• C)$23 million
• D)$35 million

---

Definitions:

Foreign Language

A language that is not the native language of the speaker, but that is used in the area or by a particular set of speakers.

Verbs

Words that describe actions, states, or occurrences, and form the main part of the predicate of a sentence.

Nouns

Words that name people, places, things, or ideas and serve as the subject of a sentence in grammar.

Phonological Loop

A component of the working memory model that deals with auditory information and preserves the order of this information.