Jackson Company Has Developed the Following Sales Projections for the Calendar

question 145

Multiple Choice

Jackson Company has developed the following sales projections for the calendar year:
$$\begin{array} { l r } \text { May } & \$ 100,000 \\\text { June } & 120,000 \\\text { July } & 140,000 \\\text { August } & 160,000 \\\text { September } & 150,000 \\\text { October } & 130,000\end{array}$$
Normal cash collection experience has been that 50% of sales is collected during the month of sale and 45% in the month following the sale. The remaining 5% of sales are never collected. Jackson's budgeted cash collections for the third calendar quarter are: (CMA adapted)

• A) $450,000.
• B) $440,000.
• C) $414,000.
• D) $360,000.

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Definitions:

Cyst Removal

A surgical procedure aimed at removing cysts, which are enclosed sac-like structures that may contain liquid, semisolid, or gaseous material.

Splinting

A medical procedure that involves the application of a stiff material to an area of the body to immobilize it, allowing for proper healing of injuries.

Abdominal Incision

A surgical cut made in the abdomen, either for medical procedures or for access to internal organs.

Postoperative

Pertaining to the period after a surgical operation.