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

question 81

Multiple Choice

The following forecasted sales pertain to Spyware Corporation: $\begin{array} { l r } \text { Month } & \text { Sales } \\ \text { September } & \$ 40,000 \\ \text { October } & 50,000 \\ \text { November } & 30,000 \\ \text { December } & 20,000 \end{array}$
Collection pattern:
65 percent in month of sale
35 percent in month following sale
$\begin{array} { l } \text {Accounts receivable as of August 31 }&\$7,000\\ \text { Finished goods inventory as of August 31}&1,500 units\\\end{array}$
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 December?

• A)$30,500
• B)$37,000
• C)$26,500
• D)$23,500

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Definitions:

Performance Goals

Targets set for an individual's or group's achievement that focus on the outcome of a task or project.

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A clearly defined date by which a particular goal or task is aimed to be completed.

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