If Excel Inc

question 9

Multiple Choice

If Excel Inc. has projected sales of $30,000 in January, $20,000 in February, and $20,000 in March, where 20% of sales are cash sales and the remaining credit sales are collected the month after, what are the cash receipts in March?

• A) $20,000
• B) $16,000
• C) $21,400
• D) $10,300

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Definitions:

Forecasting Ability

The capability to predict future trends, prices, or outcomes based on historical data, trends, and analysis.

Tracking Error

The difference between the return on a managed portfolio and that of a benchmark portfolio against which the manager is evaluated.

Benchmark Return

The standard against which the performance of a security, mutual fund, or investment manager can be measured.

Passive Portfolio

An investment strategy that seeks to replicate and hold a market index or benchmarks, typically requiring less frequent trading and lower fees.