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