The Records of Morgantown, Inc Collection Pattern:
60 Percent in Month of Sale
40 Percent

question 155

Multiple Choice

The records of Morgantown, Inc.show the following forecasted sales: $\begin{array} { l r } \text { Month } & \text { Sales } \\ \text { September } & \$ 400,000 \\ \text { October } & 500,000 \\ \text { November } & 300,000 \\ \text { December } & 200,000 \end{array}$
Collection pattern:
60 percent in month of sale
40 percent in month following the sale
$\begin{array}{lr}\text { Accounts receivable as of August } 31 & \$ 70,000 \\\text { Finished goods inventory as of August } 31 & 8,000 \text { units }\end{array}$ The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20 percent of next month's sales.
How many dollars are expected to be collected in October?

• A)$420,000
• B)$460,000
• C)$240,000
• D)$510,000

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Definitions:

Single-Phase Transformers

Transformers designed to operate on an AC power supply of single phase, meant for transferring electrical energy between circuits.

Transformation

A thorough or dramatic change in form or appearance, often used in reference to energy conversion processes.

Secondary Voltage

The output voltage of a transformer or another device that reduces or increases voltage from the primary voltage supplied to it.

Delta Secondary

A configuration for the secondary winding of a transformer where the ends of the coils are connected to form a triangle-like circuit, allowing it to supply both three-phase and single-phase load currents.