Budgeted Sales in Acer Corporation Over the Next Four Months

question 125

Multiple Choice

Budgeted sales in Acer Corporation over the next four months are given below: Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be:

• A) $141,800
• B) $100,500
• C) $118,700
• D) $161,400

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Definitions:

Per-Capita Energy Usage

The average amount of energy consumed per person within a given population or geographic area.

GDP

Gross Domestic Product, a measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.

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