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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Michael Corporation Has the Following Sales Forecasts for the First