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The Following Forecasted Sales Pertain to Spyware Corporation Collection Pattern:
65 Percent in Month of Sale
35 Percent

question 91

Multiple Choice

The following forecasted sales pertain to Spyware Corporation:  Month  Sales  September $40,000 October 50,000 November 30,000 December 20,000\begin{array} { l r } \text { Month } & \text { Sales } \\ \text { September } & \$ 40,000 \\ \text { October } & 50,000 \\ \text { November } & 30,000 \\ \text { December } & 20,000 \end{array}
Collection pattern:
65 percent in month of sale
35 percent in month following sale
Accounts receivable as of August 31 $7,000 Finished goods inventory as of August 311,500units\begin{array} { l } \text {Accounts receivable as of August 31 }&\$7,000\\ \text { Finished goods inventory as of August 31}&1,500 units\\\end{array}
Spyware Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25 percent of the next month's sales.
How many dollars are expected to be collected in September?

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Definitions:

MTBF

Mean Time Between Failures, a reliability metric that denotes the average time between failures of a system or component.

Product Reliability

The likelihood that a product will not fail within a specific period under specified conditions.

Registration

The process of officially recording or enrolling something or someone in a list, database, or system, often for legal, official, or regulatory purposes.

Probability Of Failure

The likelihood, often expressed as a percentage or ratio, that a system or component will not perform its intended function within a specified period.

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