Use the Following Information for Questions

question 112

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 is Livanos' May 31, 2020 budgeted Accounts Receivable?

• A)$320,000
• B)$96,000
• C)$224,000
• D)$311,000

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Definitions:

Communicating

The act of conveying information or expressing ideas and emotions through speech, writing, gestures, or other methods.

Legal Implications

Legal implications refer to the potential consequences or legal outcomes that may result from actions, decisions, or business practices within the framework of the law.

Denying Credit

Refusing to extend financial credit or loans to an individual or entity based on assessment criteria such as credit history.

Counterproposal

A proposal offered in response to an initial proposal, aiming to negotiate or improve the terms of an agreement.