Mikhail Corporation has the following sales forecasts for the first three months of 2016: Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following
Month. Mikhail will borrow from its bank to maintain its minimum cash balance.
Accounts receivable balance (January 1, 2016) $16,000
Cash balance (January 1, 2016) 12,000
Minimum cash balance needed 20,000
What is the cash balance at the end of January, assuming that cash is received only from customers and that
$48,000 is paid out during January?
A) $19,400
B) $23,400
C) $20,000
D) $21,000

Question

Mikhail Corporation has the following sales forecasts for the first three months of 2016:  Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following
Month. Mikhail will borrow from its bank to maintain its minimum cash balance.
Accounts receivable balance (January 1, 2016) $16,000
Cash balance (January 1, 2016) 12,000
Minimum cash balance needed 20,000
What is the cash balance at the end of January, assuming that cash is received only from customers and that
$48,000 is paid out during January?
A) $19,400 
B) $23,400 
C) $20,000 
D) $21,000

Quizplus · Accepted Answer

The Answer of Mikhail Corporation has the following sales forecasts for the first three months of 2016:  Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following
Month. Mikhail will borrow from its bank to maintain its minimum cash balance.
Accounts receivable balance (January 1, 2016) $16,000
Cash balance (January 1, 2016) 12,000
Minimum cash balance needed 20,000
What is the cash balance at the end of January, assuming that cash is received only from customers and that
$48,000 is paid out during January?
A) $19,400 
B) $23,400 
C) $20,000 
D) $21,000

Mikhail Corporation Has the Following Sales Forecasts for the First