Gallonte Inc

question 76

Multiple Choice

Gallonte Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for April, May, and June were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for April?

• A) $18,000.
• B) $21,000.
• C) $60,000.
• D) $65,000.
• E) None of the answers is correct.

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Definitions:

Dependent Variable

The variable in an experiment that is affected by manipulation of the independent variable, often measured to test the hypothesis.

Sum of Squares

A statistical measure used to describe the dispersion of data points. It calculates the sum of the squared differences from the mean.

Simple Linear Regression

A technique in statistics that estimates the association between an independent variable and a dependent variable using a straight line.

Negatively Related

A term describing the relationship between two variables where an increase in one variable is associated with a decrease in the other.