Use the Following Information for the Next 4 Questions

question 15

Multiple Choice

Use the following information for the next 4 questions.
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:
-Purchases for the month of May are expected to be

• A) $21,000
• B) $15,000
• C) $30,000
• D) $10,500

---

Definitions:

Draining Blood

The process of removing blood from a body part or organ, often for medical treatment or analysis.

Capillary Exchange

The process of exchange of water, nutrients, and waste materials between blood and tissues through capillary walls.

Exocytosis

Elimination of material from a cell through the formation of vacuoles.

Diffusion

The process by which molecules spread from areas of high concentration to areas of low concentration.