Michael Corporation Has the Following Sales Forecasts for the First

question 82

Multiple Choice

Michael Corporation has the following sales forecasts for the first three months of 2006: Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following month.
Minimum cash balance is $20,000.Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges) .How much cash would be collected in March from sales?

• A) $32,000
• B) $58,400
• C) $48,000
• D) $34,400

---

Definitions:

Materials Costs

The total expense incurred from acquiring raw materials used in the manufacturing or production process.

Receiving Report

A document used to record the receiving of goods, detailing the quantity and condition of the goods received.

Materials Ledger Card

A record card that tracks the quantity and value of materials on hand in inventory over time.

General Ledger

A comprehensive record of all financial transactions over the life of an organization, serving as the primary source for preparing financial statements.