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The Blatz Brewing Company Produces 25 Million Hectolitres of Beer

Question 4

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The Blatz Brewing Company produces 25 million hectolitres of beer each year. To put this in perspective, California consumed that much beer last year. A sales forecast for Blatz is provided in the top row of the table. Blatz sells its beer at a wholesale price of US$85 per hectoliter. All sales are on account and 75% of receivables are collected after 1 month, while 25% are collected after 2 months. What are Blatz' cash collections in March? Sales and Cash Inflow Forecast
Blatz Brewing Company
 January  February  March  Sales Forecast - millions of 11.5 hectoliters 1128 Sales Forecast - millions of  dollars $85$85$128 Collections from last month  Collections from 2 months ago  Total Cash Inflows \begin{array} { | l | c | c | c | } \hline & \text { January } & \text { February } & \text { March } \\\hline \text { Sales Forecast - millions of } & & 1 & 1.5 \\\hline \text { hectoliters } & 1 & 128 \\\hline \begin{array} { l } \text { Sales Forecast - millions of } \\\text { dollars }\end{array} & \$ 85 & \$ 85 & \$ 128 \\\hline \text { Collections from last month } & & & \\\hline \text { Collections from 2 months ago } & & & \\\hline \text { Total Cash Inflows } & & & \\\hline\end{array}


A) $21
B) $26
C) $64
D) $73
E) $85

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