ACME Inc.,bills its clients on the first of the month.For example,any sale made in the month of July is billed August 1 and is due September 1.Clients traditionally pay as follows: 70% by the end of the first month (August),20% by the end of the second month (September),9% by the end of the third month (October),and 1% default on their bills.The firm's CEO wants to know the anticipated cash flow for April.Use the following information to estimate April cash flows. $$\begin{array} { | l | l | l | l | l | l | }
\hline & { \text { First-Quarter Actual Sales } } & && { \text { Second-Quarter Anticipated Sales } } \
\hline \text { January } & \text { February } & \text { March } & \text { April } & \text { May } & \text { June } \
\hline \$ 88,000 & \$ 74,000 & \$ 96,000 & \$ 99,000 & \$ 82,000 & \$ 63,000 \
\hline
\end{array}$$
A)$94,000
B)$81,600
C)$84,640
D)$89,920

Question

ACME Inc.,bills its clients on the first of the month.For example,any sale made in the month of July is billed August 1 and is due September 1.Clients traditionally pay as follows: 70% by the end of the first month (August),20% by the end of the second month (September),9% by the end of the third month (October),and 1% default on their bills.The firm's CEO wants to know the anticipated cash flow for April.Use the following information to estimate April cash flows. $$\begin{array} { | l | l | l | l | l | l | } 
\hline & { \text { First-Quarter Actual Sales } } & && { \text { Second-Quarter Anticipated Sales } } \
\hline \text { January } & \text { February } & \text { March } & \text { April } & \text { May } & \text { June } \
\hline \$ 88,000 & \$ 74,000 & \$ 96,000 & \$ 99,000 & \$ 82,000 & \$ 63,000 \
\hline
\end{array}$$
A)$94,000
B)$81,600
C)$84,640
D)$89,920

Quizplus · Accepted Answer

The Answer of ACME Inc.,bills its clients on the first of the month.For example,any sale made in the month of July is billed August 1 and is due September 1.Clients traditionally pay as follows: 70% by the end of the first month (August),20% by the end of the second month (September),9% by the end of the third month (October),and 1% default on their bills.The firm's CEO wants to know the anticipated cash flow for April.Use the following information to estimate April cash flows. $$\begin{array} { | l | l | l | l | l | l | } 
\hline & { \text { First-Quarter Actual Sales } } & && { \text { Second-Quarter Anticipated Sales } } \
\hline \text { January } & \text { February } & \text { March } & \text { April } & \text { May } & \text { June } \
\hline \$ 88,000 & \$ 74,000 & \$ 96,000 & \$ 99,000 & \$ 82,000 & \$ 63,000 \
\hline
\end{array}$$
A)$94,000
B)$81,600
C)$84,640
D)$89,920

ACME Inc,Bills Its Clients on the First of the Month