Orchard has forecast sales to be $250,000 in February, $270,000 in March, $300,000 in April, and $280,000 in May. The average cost of goods sold is 70% of sales. All sales are made on credit and sales are collected 60% in the month of sale, and 40% the month following. What is the budgeted Accounts Receivable balance on May 31?

A. $168,000
B. $112,000
C. $196,000
D. $117,600


Answer: B

Business

You might also like to view...

Former Disney chairman Michael Eisner and other company executives were blinded by ethnocentrism

Avoiding the Self-Reference Criterion (SRC) requires a person to suspend assumptions based on prior experience and success and be prepared to acquire new knowledge about human behavior and motivation. Indicate whether the statement is true or false

Business

Which of the following is part of an internal green marketing program?

A) design for environment practices B) cradle-to-cradle practices C) biodegradable packaging D) product stewardship E) new clean technology

Business

Identify and describe the three parts of the motivation process.

What will be an ideal response?

Business

Enterprise Rent-A-Car closely ties customer service to employee success. With a tracking system called the Enterprise Service Quality Index (ESQi), the company routinely follows up with customers by phone to determine their level of satisfaction with their most recent Enterprise service encounter. Only completely satisfied customers count toward an employee ESQi score, which is used to measure employee's potential for promotion. Enterprise is using ________ to determine whether performance meets standards.

A. Trailer calls B. Complaint solicitation C. Lost customer research D. Critical incident studies E. Customer panels

Business