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Leak Company Sells Only on Credit

question 26

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Leak Company sells only on credit.It reported the following information for 2020: Leak Company sells only on credit.It reported the following information for 2020:   Customer amounts on account are collected 45% in the month of sale and 55% in the following month.How much is the November 30, 2020 budgeted Accounts Receivable? A) $467,500 B) $382,500 C) $827,500 D) $528,000 Customer amounts on account are collected 45% in the month of sale and 55% in the following month.How much is the November 30, 2020 budgeted Accounts Receivable?


Definitions:

Yield-to-Maturity

The total return anticipated on a bond if the bond is held until its maturity date, considering all interest payments and the repayment of principal.

Tax-Deductibility

The feature of certain expenses that can be subtracted from gross income to reduce taxable income and lower the tax bill.

Interest Expense

The cost incurred by an entity for borrowed funds; this can include payments on loans, bonds, or lines of credit.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

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