(Appendix 10A) Conner Company Is a Medium-Sized Toy Distributor Cash Receipts for the Month of May Are Expected to Has

question 68

Multiple Choice

(Appendix 10A) Conner Company is a medium-sized toy distributor. Experience has shown that 30% of sales are collected within the month of sale, 60% is collected the month after the sale, and 10% is collected two months after the sale. Inventory on hand at the end of a month is to be 70% of the next month's budgeted sales. Cost of goods sold is 50% of the selling price. Payment for purchases is made in the month after purchase. All other costs are paid in the month incurred. Budgeted amounts are as follows: $\begin{array}{ccccccc}&\text { March}&\text { April }&\text { May }&\text { June}&\text { July }&\text { August}\\ \text { Sales } & \$ 10,000 & \$ 20,000 & \$ 30,000 & \$ 30,000 & \$ 50,000 & \$ 40,00 \\ \text {Cost}&&&&&\\ \text { Wages } & & & 1,500 & 2,000 & 2,500 & 1,500 \\ \text { Rent } & & & 500 & 500 & 500 & 500 \\ \text { Other } & & & 400 & 500 & 600 & 500 \\\end{array}$ Cash receipts for the month of May are expected to be:

• A) $30,000
• B) $21,000
• C) $29,000
• D) $22,000

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Definitions:

Creativity

The ability to produce original and valuable ideas, involving imagination and the capacity to solve problems in novel ways.

Myelination

The process of forming a myelin sheath around a nerve to allow electrical impulses to transmit quickly and efficiently along the nerve cells.

Impulsiveness

A trait leading individuals to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of consequences.

Perseveration

The tendency to persevere in, or stick to, one thought or action for a long time.