Farley Company Reported the Following Information for 2016 All Sales Are on Credit

question 93

Multiple Choice

Farley Company reported the following information for 2016: $$\begin{array} { l c c c c c } & \text { September } & \text { October } & \text { November } & \text { December } & \text { January } \\\text { Budgeted sales } & \$ 240,000 & \$ 310,000 & \$ 290,000 & \$ 360,000 & \$ 200,000 \\\end{array}$$ All sales are on credit.
-Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
How much is the November 30, 2016 budgeted Accounts Receivable?

• A)$300,000
• B)$180,000
• C)$155,000
• D)$145,000

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Definitions:

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare, indicating who ultimately bears the burden of the tax.

Tax Burden

The tax burden refers to the total amount of taxes that individuals, businesses, or other entities must pay, expressed as a percentage of income or GDP.

Tax Burden

The overall impact of taxes on an individual's, corporation's, or economy's financial performance and well-being.

Tax Imposed

A financial charge or levy instituted by governmental authorities on individuals, transactions, or properties to generate revenue.