As of January 1 of the Current Year,the Grackle Company

question 61

Multiple Choice

As of January 1 of the current year,the Grackle Company had accounts receivables of $50,000.The sales for January,February,and March were as follows: $120,000,$140,000,and $150,000,respectively.Of each month's sales,20% are for cash.Of the remaining 80% (the credit sales) ,60% are collected in the month of sale,with the remaining 40% collected in the following month.What is the total cash collected (both from accounts receivable and cash sales) in the month of March?

• A) $74,800
• B) $146,800
• C) $102,000
• D) $116,800

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Definitions:

A.W. Phillips

An economist known for describing the inverse relationship between rates of unemployment and corresponding rates of inflation, which is now known as the Phillips Curve.

United Kingdom

A sovereign country located off the northwestern coast of mainland Europe, comprising England, Scotland, Wales, and Northern Ireland.

Rate Of Change

The speed at which a variable changes over a specific period of time.

Sacrifice Ratio

The measure of the decline in annual output required to reduce inflation by one percentage point.