Rainbow Legacy Ltd Has the Following Balances at 31^st December

question 49

Multiple Choice

Rainbow Legacy Ltd has the following balances at 31^st December 2019: Cash $46,000; accounts receivable $34,000 ($10,000 from November and $24,000 from December) ; merchandise inventory $40,000; and accounts payable $20,000 (for merchandise purchases only) . Budgeted sales follow:
$$\begin{array} { l l } \text { January } & \$ 100,000 \\\text { February } & \$ 180,000 \\\text { March } & \$ 120,000 \\\text { April } & \$ 200,000\end{array}$$ Other data:
-Sales are 40% cash, 50% collected during the following month, and 10% collected during the second month after sale. A 3% cash discount is given on cash sales
-Cost of goods sold is 40% of sales
-Ending inventory must be 150% of the next month's cost of sales
-Purchases are paid 70% in month of purchase and 30% in the following month
-The selling and administrative cost function is: $6,000 + $0.2 × sales. This includes $1,000 for depreciation
-All costs are paid in the month incurred
-Minimum cash balance requirement is $6,000
What will be the ending cash balance for January before lending (if required) ?

• A) $3,240
• B) $78,800
• C) $19,720
• D) $6,000

Recognize the importance of environmental factors and community infrastructure in disease prevention.

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Identify key figures and their contributions to public health and nursing.

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Definitions:

Nursing Informatics

A specialty that integrates nursing science with multiple information and analytical sciences to manage and communicate data, information, knowledge, and wisdom in nursing practice.

Telecommunications Industry

Comprises companies that make communication possible across distances through telephone, internet, wireless networks, and other audio and video transmission systems.

Numerical Communications

The use of numbers and statistics to convey information or messages, especially in the context of data analysis and reporting.

American Medical Association

A professional group that represents the interests of physicians and healthcare professionals in the United States, advocating for public health and medical ethics.