KAB Incorporated, a Small Retail Store, Had the Following Results

question 95

Multiple Choice

KAB Incorporated, a small retail store, had the following results for May. The budgets for June and July are also given. Sales are collected 80% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the sale. The "selling and administrative expenses" are paid in the month of the sale.The cash disbursements during June for goods purchased for sale and for selling and administrative expenses should be:

• A) $40,000
• B) $41,000
• C) $42,500
• D) $43,500

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Definitions:

Killed Pathogen Vaccine

A type of vaccine made from a virus or bacteria that has been killed or inactivated, stimulating the immune system to respond without causing the disease.

Tetanus

An acute bacterial infection caused by Clostridium tetani, characterized by muscle stiffness and spasms, particularly of the jaw and other major muscles.

Intramuscular (IM)

Type of injection administered into a muscle.

Needle Used

Refers to a needle that has already been utilized for a medical procedure or injection, implying it is no longer sterile.