Kara Ltd. has the following sales forecasts for the selected three-month period in 2004: Seventy percent 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 2004: Seventy percent 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 2004: Seventy percent 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