Use the Information Below to Answer the Following Questions $$\begin{array} { l l } \text { January } & \$ 1,080,000 \\\text { February } & \$ 1,300,000 \\\text { March } & \$ 1,280,000\end{array}$$

question 42

Multiple Choice

Use the information below to answer the following questions.
Sales in December were $960,000. Projected sales for the first quarter of 2018 are: $$\begin{array} { l l } \text { January } & \$ 1,080,000 \\\text { February } & \$ 1,300,000 \\\text { March } & \$ 1,280,000\end{array}$$ Sales are 20% cash and 80% on credit. Debtors pay in the month following the sale.
-Refer to the table above. Calculate the total cash sales for the three months, January, February and March.

• A)$256,000.
• B)$960,000.
• C)$2,848,000.
• D)$732,000.

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Definitions:

Capital Structure

The capital structure is the mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Book Values

The net value of a company's assets, as recorded in its financial statements, minus its liabilities and intangible assets.

Market Value

The estimated amount for which an asset or company could be sold on the open market.

Retention Ratio

The portion of a company's earnings that is not distributed as dividends but is retained by the business for reinvestment.