Figure 15-4
Budgeted Sales for the Second Quarter of the Current

question 73

Multiple Choice

Figure 15-4
Budgeted sales for the second quarter of the current year are as follows: $\begin{array}{lc} & \text { Budgeted Sales } \\\text { Apri1 } & £ 150,000 \\\text { May } & 200,000 \\\text { June } & 180,000\end{array}$ The company collects 20 per cent in the month of sale, 70 per cent in the first month following the sale, and 10 per cent in the second month following the sale.
-Refer to Figure 15-4 above. Total cash collected in June will be

• A)£180,000.
• B)£191,000.
• C)£90,000.
• D)£140,000.

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Definitions:

Actual Stock Price

The current trading price of a company's shares on the stock market.

Required Return

This is the percentage yield that an investor expects to earn from an investment to make it worthwhile.

Common Share

A type of equity share that represents ownership in a company, granting the holder voting rights and a share in the company's profits through dividends.

Intrinsic Value

The estimated true value of an asset, based on underlying perceptions of its true financial performance and future prospects.