The LaGrange Corporation Had the Following Budgeted Sales for the First

question 254

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:55% in month of sale40% in month following sale5% in second month following saleThe accounts receivable balance on January 1 of the current year was $82,000, of which $63,000 represents uncollected December sales and $19,000 represents uncollected November sales.What is the budgeted accounts receivable balance on May 31?

• A) $72,450
• B) $85,500
• C) $91,450
• D) $163,900

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Definitions:

Tranquilizers

Drugs used to reduce tension or anxiety, often affecting the central nervous system to induce a calming effect.

Depressant Drugs

Substances that reduce the function or activity of a specific part of the body or brain, often used to induce relaxation, decrease anxiety, or promote sleep.

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.

Relaxation

Relaxation refers to a state of calmness, reduced tension, and stress, often achieved through techniques such as deep breathing, meditation, or certain physical activities.