Dolce Co Estimates Its Sales at 180000 Units in the First

question 25

Multiple Choice

Dolce Co. estimates its sales at 180000 units in the first quarter and that sales will increase by 18000 units each quarter over the year. They have and desire a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at

• A) $3051000.
• B) $4428000.
• C) $5319000.
• D) $6156000.

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Definitions:

GDP

Gross Domestic Product, the total market value of all finished goods and services produced within a country in a given period.

Economic Recovery

A period in which economic activity rebounds following a recession or economic downturn, characterized by increases in employment, consumer spending, and growth.

Money Supply

The total amount of money available in an economy at a specific time, including cash and deposits.

Tax Increase

An escalation in the statutory rate imposed by the government on income, goods, services, or transactions.