Hesterman Corporation Makes One Product and Has Provided the Following

question 72

Multiple Choice

Hesterman Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations: Credit sales are collected:40% in the month of the sale60% in the following monthThe ending finished goods inventory should equal 40% of the following month's sales. The ending raw materials inventory should equal 20% of the following month's raw materials production needs.The expected cash collections for May is closest to:

• A) $920,400
• B) $995,920
• C) $552,240
• D) $443,680

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Definitions:

Total Mean

Refers to the average value of a set of numbers, calculated by summing all the data points and dividing by the total number of points.

F-Ratio

The F-ratio is a statistic used to compare the variance between groups with the variance within groups in analysis of variance (ANOVA) testing.

Factor A

A variable manipulated by the researcher in an experiment to observe its effect on the dependent variable; often used in the context of factorial designs.

MSA

An abbreviation for Metropolitan Statistical Area, which is a geographical region with a relatively high population density at its core and close economic ties throughout the area.