Use the Following Information to Answer the Following Questions

question 53

Multiple Choice

Use the following information to answer the following Questions
Morgan Company's budgeted income statement reflects the following amounts:

Sales are collected 50% in the month of sale, 30% in the month following sale, and 19% in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year.
Morgan pays for all purchases in the month following purchase and takes advantage of a 3% discount. The following balances are as of January 1:

*Of this balance, $35,000 will be collected in January and the remaining amount will be collected in February.
The monthly expense figures include $5,000 of depreciation. The expenses are paid in the month incurred


-Morgan's expected cash balance at the end of February is:

• A) $87,000.
• B) $89,160.
• C) $92,000.
• D) $94,160.
• E) $113,300.

---

Definitions:

Housekeeping Services

Housekeeping services refer to the professional cleaning and maintenance of homes, hotels, and other establishments to ensure a clean, orderly, and sanitary environment.

Confidential Information

Sensitive information meant to be kept secret or private between specific individuals or groups.

Secure System

A computing environment that uses safeguards and protective measures to mitigate risks to data and software.

Viral Marketing

A marketing strategy that focuses on spreading information and opinions about a product or service from person to person, especially by using unconventional means like the Internet or email, to influence the behavior of a large population.