Question: Suppose Merrimack sells one million hardcover books a day at an average price of $37. Assume that its cost of production averages $23 a book. Merrimack has no beginning inventory, but it wants to have a three-day supply of books in ending inventory. Assume that operating expenses are $1 million per day.
Assuming Merrimack receives 70% of sales in cash the day of the sale and 30% in accounts receivable that is paid in the subsequent week, what is the company's budgeted cash collections from customers for the week if it had beginning Accounts receivable of $1.9 million?
A. $181.3 million
B. 1.33 million
C. $179.4 million
D. $183.2 million