Limelite Ltd, Projects Sales for Its First Three Months of Operation

question 92

Multiple Choice

Limelite Ltd, projects sales for its first three months of operation as follows: $$\begin{array} { | l | l | l | l | } \hline & \text { Jaruary } & \text { February } & \text { March } \\\hline \text { Credit Sales } & \$ 150,000 & \$ 188,000 & \$ 176,000 \\\hline \text { Cash Sales } & \$ 60,000 & \$ 50,000 & \$ 55,000 \\\hline & \$ 210,000 & \$ 238,000 & \$ 231,000 \\\hline\end{array}$$ Inventory on 1^st January is $40,000. Subsequent beginning inventories should be 40% of that month's cost of goods sold. Goods are priced at 140% of their cost. 50% of purchases are paid for in the month of purchase; the balance is paid in the following month. It is expected that 50% of credit sales will be collected in the month following sale, 30% in the second month following the sale, and the balance the third month. A 5% discount is given if payment is received in the month following sale.
What is the projected cost of goods sold for January?

• A) $150,000
• B) $84,000
• C) $188,000
• D) $140,000

Understand the principles of efficient and effective care within the healthcare setting.

Analyze the impact of medication knowledge, including side effects, on patient care and safety.

Understand the basic concepts of sensation and perception and their importance in interpreting the world.

Identify different sensory processes and the stimuli they are associated with.

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Definitions:

Kilo-

A prefix in the metric system representing one thousand (1000) of the unit it precedes.

Decimal

Numbers that are expressed as a fraction of a part using 10 as its base number; it also refers to the period used to separate a whole number from a fraction, as in 10.2, otherwise read as “ten and two-tenths.”

Fraction

A numerical quantity that is not a whole number, representing a part of a whole.

Base Number

A mathematical value serving as a foundational digit in a numbering system, determining its counting process, such as 2 in binary or 10 in decimal.