Bendigo Resources Makes All Sales on Credit with 40% of the Payment

question 9

Multiple Choice

Bendigo Resources makes all sales on credit with 40% of the payment received in the month of sale, 40% in the month following the sale and the remaining 20% in the subsequent month.
Budgeted sales are as follows:
January $100 000
February $140 000
March $120 000
The budgeted receipts from debtors during March are:

• A) $100 000.
• B) $120 000.
• C) $124 000.
• D) $196 000.

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Definitions:

Company Profits

The financial gain that a company achieves after all expenses, taxes, and costs have been subtracted from total revenue.

Time-Series Graph

A two-variable graph that has dates on the horizontal axis and values of a variable that occurred on those dates on the vertical axis.

Seasonally Adjusted

A statistical technique used to remove seasonal variations from a data series to more clearly analyze trends.

Unemployment Rate

The fraction of individuals in the labor force who are without jobs and are searching for employment.