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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Definitions:

Marketing Manager

A professional responsible for overseeing the promotion of a business's products or services.

Workforce Diversity

Refers to a workplace that includes a wide range of employees from various backgrounds and identities.

Ethnicity

A categorization of people based on shared cultural, linguistic, or ancestral traits.

Sexual Orientation

An inherent or immutable enduring emotional, romantic, or sexual attraction to other people.