Hiruit Company's Sales in December Were $5,500 Gross Margin Is 30

question 6

Multiple Choice

Hiruit company's sales in December were $5,500. It expects sales to increase 10% in January and February and 15% in March. All of its sales are made on credit. The typical collection pattern is:
$\begin{array}{ll}\text { Collections }&\text { Percentage of total receivables }\\\text { In month of sale } & 10 \% \\\text { In second month } & 70 \% \\\text { In third month } & 15 \% \\\text { Not collectible } & 5 \%\end{array}$
Gross margin is 30%. Inventory levels at the end of December are $900 and are expected to grow at the same rate as sales. Purchases are paid for the month after they are made. Net accounts receivable at the end of December are $400.
-What cash is paid for purchases in the month of March?

• A)$5,520.62
• B)$4,757.50
• C)$4,559.50
• D)$2,095.50

---

Definitions:

Altruism

Altruism refers to the selfless concern for the well-being of others without expecting any reward or benefit in return.

Integrity

The quality of being honest and having strong moral principles, crucial for trustworthiness in social and professional settings.

Emotional Intelligence

The capability to recognize, understand, and manage one's own emotions and to comprehend and influence the emotions of others.

Significant Improvement

A noticeable and important enhancement in performance, quality, or outcome.