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Mikhail Corporation Has the Following Sales Forecasts for the First

Question 56

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Mikhail Corporation has the following sales forecasts for the first three months of 2014: Mikhail Corporation has the following sales forecasts for the first three months of 2014: 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. 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 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.
Mikhail Corporation has the following sales forecasts for the first three months of 2014: 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. 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 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

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