Shiller Corporation Has the Following Sales Forecasts for the Selected

question 101

Multiple Choice

Shiller Corporation has the following sales forecasts for the selected three-month period in 2018: $$\begin{array} { l r } \text { Month } & \text { Sales } \\\text { July } & \$ 24,000 \\\text { August } & 14,000 \\\text { September } & 16,000\end{array}$$ All sales are on account. Seventy percent of sales are collected in the month of the sale, and the remainder are collected in the following month. $\begin{array} { l } \text {Accounts receivable balance (July 1, 2018) }&\$20,000\\ \text { Cash balance (July 1, 2018) }&10,000\\\end{array}$
Minimum cash balance is $10,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges) . How much cash would be collected in September from sales?

• A)$15,400
• B)$17,000
• C)$16,000
• D)$20,000

Understand the implications of antitrust legislation on business practices.

Describe strategies firms may use in oligopolistic competition, such as tit-for-tat.

Differentiate between imperfect competition, oligopoly, and monopolistic competition.

Understand market dynamics in oligopoly, including price wars and cartel formation.

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Definitions:

Dishonored

A term used to describe a financial instrument, such as a check or promissory note, that has been refused acceptance or payment.

Personal Defense

A liability defense that is not applicable to holders in due course.

Modification

A change or alteration, often to a contract or agreement, altering its terms or conditions.

Dishonored

Referring to a financial instrument, such as a check or promissory note, that is not accepted or paid when presented for payment.