Topaz Company Has the Following Expected Pattern of Collections on Credit

question 96

Multiple Choice

Topaz Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale, 15 percent in the month after the month of sale, and 14 percent in the second month after the month of sale. The remaining 1 percent is never collected. At the end of May, Topaz Company has the following accounts receivable balances: Topaz's expected sales for June are $150,000. What were total sales for April?

• A) $150,000
• B) $72,414
• C) $70,000
• D) $140,000

---

Definitions:

Ethnocentric

An attitude or policy where one's own culture, nation, or group is considered superior to others, often leading to biased judgments.

Polycentric

An approach in international business that emphasizes and adapts to the cultural differences of the countries in which it operates.

Performance Orientation

A cultural or organizational focus on performance and achievement of specific outcomes, often measured against predefined standards.

Future Orientation

A perspective or planning approach that prioritizes long-term goals and anticipates future trends and potential challenges.