Gallonte Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for the quarter?
A. $121,000.
B. $140,000.
C. $175,000.
D. $153,000.
E. None of the answers is correct.
Answer: D
You might also like to view...
When using an online tool to schedule a meeting, which of the following should be included in the title?
A) Name of the meeting B) Where, when and what type of meeting is being scheduled C) What attachments are included D) When the auto reminder will be sent E) When you need availability responses by
Benchmarking is the process comparing an organization's practices and technologies with those of other companies.
Answer the following statement true (T) or false (F)
Murray Products sells 2,100 kayaks per year at a price of $450 per unit
Murray sells in a highly competitive market and uses target pricing. The company has $990,000 of assets and the shareholders wish to make a profit of 17% on assets. Fixed costs are $450,000 per year and cannot be reduced. Assume all products produced are sold. What are the target variable costs? A) $132,040 B) $990,000 C) $776,700 D) $326,700
In the context of managing working capital, the hedging principle refers to which of the following?
A) matching the maturity of the source of financing to the cash flow generating characteristics of the asset being financed B) speculation regarding the direction of short-term interest rates C) protecting the firm against the risk of rising interest rates D) the usage of interest rate swaps