Kara Ltd. has the following sales forecasts for the selected three-month period in 2011: Seventy per cent of sales are collected in the month of the sale, and the remainder are collected in the following month. Minimum cash balance is £10,000. Cash can be borrowed in £1,000 increments from the local bank (assume no interest charges). How much cash would be collected in September from sales?
A) £15,400
B) £17,000
C) £16,000
D) £20,000

Question

Kara Ltd. has the following sales forecasts for the selected three-month period in 2011:  Seventy per cent of sales are collected in the month of the sale, and the remainder are collected in the following month.  Minimum cash balance is £10,000. Cash can be borrowed in £1,000 increments from the local bank (assume no interest charges). How much cash would be collected in September from sales?
A) £15,400 
B) £17,000 
C) £16,000 
D) £20,000

Quizplus · Accepted Answer

The Answer of Kara Ltd. has the following sales forecasts for the selected three-month period in 2011:  Seventy per cent of sales are collected in the month of the sale, and the remainder are collected in the following month.  Minimum cash balance is £10,000. Cash can be borrowed in £1,000 increments from the local bank (assume no interest charges). How much cash would be collected in September from sales?
A) £15,400 
B) £17,000 
C) £16,000 
D) £20,000

Kara Ltd Has the Following Sales Forecasts for the Selected Three-Month