Sevenbergen Corporation Makes One Product and Has Provided the Following

question 1

Multiple Choice

Sevenbergen 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 monthRaw materials purchases are paid:30% in the month of purchase70% in the following monthThe ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs.The expected cash collections for August is closest to:

• A) $912,640
• B) $415,840
• C) $496,800
• D) $828,000

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Definitions:

Computer-Aided Design

A software technology that aids in the creation, modification, analysis, or optimization of a design.

Engineering Documentation

The collection of documents that outline the specifications, instructions, and procedures for engineering projects and products.

Development Cycles

The series of phases in the process of developing a product or system, from initial concept through to launch and beyond, often including stages of planning, design, testing, and implementation.

Customer Desires

The wants and needs of consumers that influence their purchasing decisions and interactions with products and services.