Nuthatch Corporation Began Its Operations on September 1 of the Current

question 7

Multiple Choice

Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business-September, October, and November-are $260,000, $375,000, and $400,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.
The cash collections expected in November from accounts receivable are projected to be

• A) $280,000
• B) $316,400
• C) $295,200
• D) $276,500

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Definitions:

State Statutes

Laws enacted by the legislative bodies of individual states in the United States.

Maintenance

The act of preserving or keeping a piece of equipment, device, or property in working order or in a maintained condition through regular upkeep.

Condemnation Proceeding

A legal process in which government acquires private property for public use, providing fair compensation to the owners.

Eminent Domain

The power of a government to take land from private citizens for public use on the payment of just compensation.