Use the Following Information for the Next 2 Questions

question 39

Multiple Choice

Use the following information for the next 2 questions.
Taft Corporation collects cash from customers as follows: 60% in the month of sale, 20% in the month after sale, 19% in the second month after sale, and 1% is never collected. Bad debts are written off annually in December. Budgeted sales are all on credit and amount to:
-What is the budgeted amount of cash to be collected in July?

• A) $560,000
• B) $554,000
• C) $558,000
• D) $551,000

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Definitions:

APR

Stands for Annual Percentage Rate, which represents the annual rate charged for borrowing or earned through an investment, accounting for all fees and costs.

Average Rate

A statistical measure that represents the central or typical value in a set of rates or ratios, often used in financial contexts to describe mean returns or interest rates.

Investment Account

An account that holds securities, cash, and other investments for investment purposes.

Investing

The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.