Walter Enterprises expects its September sales to be 20% higher than its August sales of $150,000. Purchases were $100,000 in August and are expected to be $120,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month. The beginning cash balance on September 1 is $7,500. The ending cash balance on September 30 would be:
A. $54,000.
B. $61,500.
C. $136,500.
D. $31,500.
E. $67,500.
Answer: B
You might also like to view...
A favorable fixed overhead spending variance indicates that
a. budgeted fixed overhead is less than actual fixed overhead. b. budgeted fixed overhead is greater than applied fixed overhead. c. applied fixed overhead is greater than budgeted fixed overhead. d. actual fixed overhead is less than budgeted fixed overhead.
Selected financial data for Strong Health Group and Sturdy Medical Corporation, two companies in the health-care industry, are as follows:($ in millions)Net SalesBeginning AccountsReceivableEnding AccountsReceivableStrong Health$1,850$200$230Sturdy Medical2,100400380Required:1. Calculate the receivables turnover ratio and average collection period for Strong Health and Sturdy Medical. Round your answers to one decimal place. Compare your calculations with those for Tenet Healthcare and LifePoint Hospitals reported in the chapter text. Which of the four companies maintains a higher receivables turnover?2. How does the receivables turnover ratio reflect the efficiency of management? Discuss factors that affect the receivables turnover ratio.
What will be an ideal response?
The first affirmative action programs were initiated to correct the past exclusion of women and minorities from the business world.
Answer the following statement true (T) or false (F)
The person who files or commences a civil lawsuit is known as the:
A) plaintiff. B) prosecuting attorney. C) defendant. D) attorney general.