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A company sells flower bulbs to local nurseries. Each bag of bulbs sells for $2. The company's accountant has prepared the following sales forecast (in
A company sells flower bulbs to local nurseries. Each bag of bulbs sells for $2. The company's accountant has prepared the following sales forecast (in bags) for the fourth quarter of 2016:
October | 5,000 bags |
November | 9,000 bags |
December | 8,000 bags |
Historically, the cash collection of sales has been as follows: 40 percent in the month of sale and 60 percent in the month following sale. Cash receipts for December are expected to be:
A. $16,800 | ||
B. $ 6,400 | ||
C. $16,200 | ||
D. $ 17,200 |
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