A Firm Has Actual Sales in November of $1,000 and Projected

Multiple Choice

A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. The firm makes 10 percent of its sales for cash, collects 40 percent of its sales one month following the sale, and collects the balance two months following the sale. The firm's total cash receipts in November is ________.

A) $1,000
B) $100
C) $700
D) $400