Use the Information Below to Answer the Following Questions

question 45

Multiple Choice

Use the information below to answer the following questions.
Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016. Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale
40 per cent in the month following the sale
-If units sales of the iPad are currently 5,000 units, and those of the Macbook Air are currently double those of the iPad, what will the company's total sales forecast be if sales of the iPad increase by 10 per cent and those of the Macbook Air go up by 2,000 units?

• A) 16,000 units
• B) 16,500 units
• C) 17,500 units
• D) 17,000 units

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Definitions:

Prepaid Assets

Assets that represent future expenses that have been paid in advance and will be recognized as expenses when they are actually incurred.

Accounts Payable

Liabilities of a business that are yet to be paid out to creditors, typically for purchases of goods and services.

Inventory

Inventory comprises goods and materials that a business holds for the purpose of resale, manufacturing, or production.

Amortization of Premium

The gradual recognition in income statements of the excess amount paid over the face value of bonds over the bond's life.