Trapp CoWas Organized on August 1 of the Current Year $$\begin{array} { l r } \text { August } & \$ 100,000 \\\text { September } & 185,000 \\\text { October } & 225,000\end{array}$$

question 82

Essay

Trapp Co.was organized on August 1 of the current year.Projected sales for the next three months are as follows:
$$\begin{array} { l r } \text { August } & \$ 100,000 \\\text { September } & 185,000 \\\text { October } & 225,000\end{array}$$
The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month.

Prepare a schedule indicating cash collections of accounts receivable for August, September, and October.

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Definitions:

Span of Control

Refers to the number of subordinates or direct reports that a manager or supervisor can effectively oversee.

Formalized

The process of defining, establishing, and enforcing rules, procedures, and standards within an organization or system.

Organizational Growth

The process of a business expanding through increases in revenue, employees, customer base, or market share.

Simple Structure

An organizational framework characterized by minimal hierarchical levels and straightforward, clear lines of authority and communication.