The LaGrange Corporation Had the Following Budgeted Sales for the First

question 283

Multiple Choice

The LaGrange Corporation had the following budgeted sales for the first half of the current year: The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:Collections on sales:60% in month of sale30% in month following sale10% in second month following saleThe accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales.The total cash collected during January by LaGrange Corporation would be:

• A) $410,000
• B) $254,000
• C) $344,000
• D) $331,500

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Definitions:

Sustainable Energy

Energy obtained from sources that are essentially inexhaustible and capable of being replenished or maintained for future generations without depleting natural resources.

Full-Cost Pricing

A pricing strategy that includes all direct, indirect, fixed, and variable costs in the price of a product or service.