Use the Following Information for Questions

question 125

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 2012 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 30, 2012 budgeted Accounts Receivable?

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

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Definitions:

Magnification

The cognitive distortion of exaggerating or minimizing the importance or size of events.

Phantom Limb Pain

A phenomenon where individuals experience sensations, often pain, in a limb that has been amputated.

Missing Limb

The absence of an arm or leg, often due to amputation or congenital conditions.

Gradual Onset

The slow development or appearance of symptoms or conditions over time.