Michael Ltd. has the following sales forecasts for the first three months of 2004: 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

Question

Michael Ltd. has the following sales forecasts for the first three months of 2004: 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

Quizplus · Accepted Answer

The Answer of Michael Ltd. has the following sales forecasts for the first three months of 2004: 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