Use the Following Information for Questions

question 44

Multiple Choice

Use the following information for questions
Livanos, Inc.reports all its sales on credit, and pays operating costs in the month incurred.Amounts for 2020 are:

-Customer amounts on account are collected 70% in the month of sale and 30% in the following month.
-Cost of goods sold is 60% of sales.
-Livanos purchases and pays for merchandise 40% in the month of acquisition and 60% in the following month.
-Operating expenses are: Salaries, $50,000; Depreciation, $12,000; Rent, $15,000; and Utilities, $14,000.
-Accounts payable is used only for inventory acquisitions.
-How much cash will Livanos receive during May from customers?

• A)$308,000
• B)$311,000
• C)$224,000
• D)$299,000

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Definitions:

Psychological State

The current state of an individual's mental and emotional condition at a given time.

Physiological Response

Automatic reactions of the body to internal or external stimuli, often as part of the survival and stress responses.

Behavioral Response

A reaction of an individual to a stimulus or an environment, often assessed in psychological contexts.

Conscious Experience

The subjective awareness of one's thoughts, feelings, and environment, including sensory perception and self-awareness.