Sioux Corporation Is Estimating the Following Sales for the First

question 91

Multiple Choice

Sioux Corporation is estimating the following sales for the first four months of next year: Sales are normally collected 60% in the month of sale and 40% in the month following the sale. Based on this information, how much cash should Sioux expect to collect during the month of April?

• A) $370,000
• B) $222,000
• C) $119,000
• D) $358,000

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Definitions:

Legal Capacity

Legal capacity is the ability of an individual or entity to enter into legally binding contracts, sue or be sued, and make decisions that carry legal consequences.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and other operational details among partners in a business venture.

Minor Partner

A partner in a business who has not reached the age of majority, limiting their legal capacity and liabilities within the partnership.

UPA

Acronym for Uniform Partnership Act, which is legislation aimed at governing the operation and management of partnerships in the United States.