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9. Given the following data: Total current assets = $852; Total current liabilities = $406;
Long-term debt = $442, calculate the net working capital.
A. $446
B. $852
C. $410
D. None of the above
16. The following is the general formula for calculating the "Ending accounts receivable
(AR):"
A. Ending (AR) = beginning (AR) - sales + collections
B. Ending (AR) = beginning (AR) + sales - collections
C. Ending (AR) = beginning (AR) + sales + collections
D. none of the above
17. A company has forecast sales in the first 3 months of the year as follows (figures in
millions): January, $80; February, $60; March, $40. 70% of sales are usually paid for in the
month that they take place, 20% in the following month, and the final 10% in the next month.
Receivables at the end of December were $23 million. What are the forecasted collections on
accounts receivable in March?
A. $180 million
B. $13 million
C. $40 million
D. $48 million
18. A company has forecast sales in the first 3 months of the year as follows (figures in
millions): January, $200; February, $140; March, $100. 50% of sales are usually paid for in
the month that they take place, 30% in the following month, and the final 20% in the next
month. Receivables at the end of December were $100 million. What are the forecasted
collections on accounts receivable in March?
A. $132 million
B. $100 million
C. $240 million
D. $92 million