Cool Looks Imports and Distributes Sunglasses in Southern California

question 1

Multiple Choice

Cool Looks imports and distributes sunglasses in Southern California. The company's peak selling season has just passed and forecasted sales for the next few months is shown in the top row of the table. 40% of sales are cash and are collected in the month of the sale. 60% of sales are on credit, and are collected in the month following the sale. Cool Looks purchases merchandise one month in advance of sales and the cost of goods sold is 70% of sales. Cool Looks' suppliers are paid one month after the purchase. General and administrative expenses are $6,750 a month. Interest payments are $200 per month. Cool Looks will begin September with a cash balance of $10,000.
Cool Looks
Sales Forecast and Cash Budget

-Referring to Cool Looks,what are total cash inflows in September?

• A) $18,000
• B) $20,000
• C) $30,000
• D) $38,000
• E) $50,000

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Definitions:

Palpebral Fissures

The natural openings between the eyelids of the upper and lower eyes, varying in shape and size among individuals.

Hearing-Impaired

A term used to describe individuals who have partial or total inability to hear sounds.

Lip Reads

The process of understanding speech by visually interpreting the movements of the lips, face, and tongue, used especially by those with hearing impairments.

Exaggerate Pronunciation

The act of making sounds or articulation of words more pronounced than usual, often for emphasis or effect.