Benjamin Corporation Began Its Operations on September 1 of the Current

question 108

Multiple Choice

Benjamin Corporation began its operations on September 1 of the current year.Budgeted sales for the first three months of business are $250,000, $300,000, and $420,000, respectively, for September, October, and November.The company expects to sell 20% of its merchandise for cash.Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. The cash collections from accounts receivable in October are:

• A) $270,000.
• B) $272,500.
• C) $210,000.
• D) $218,000.

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Definitions:

SWOT Analysis

A framework used in strategic planning for assessing a business's strengths, weaknesses, opportunities, and threats with regard to competition or project execution.

Quadrant A

A section of a Cartesian plane divided by the X and Y axes, used in mathematics and business to represent different categories or segments.

Strength

The capacity to withstand force or stress; often used to describe the robustness of materials, structures, or character.

Threat

A warning or indication of a possible danger, harm, or adverse condition.