The Following Information Pertains to the January Operating Budget for Casey

question 108

Multiple Choice

The following information pertains to the January operating budget for Casey Corporation.
-Budgeted sales for January $209,000 and February $109,000.
-Collections for sales are 60% in the month of sale and 40% the next month.
-Gross margin is 35% of sales.
-Administrative costs are $10,000 each month.
-Beginning accounts receivable is $25,000.
-Beginning inventory is $23,000.
-Beginning accounts payable is $72,000. (All from inventory purchases.)
-Purchases are paid in full the following month.
-Desired ending inventory is 20% of next month's cost of goods sold (COGS) .
At the end of January, budgeted accounts receivable is ________.

• A) $43,600
• B) $83,600
• C) $125,400
• D) $165,800

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Definitions:

Superordinate Level

A high-level classification or grouping that is more abstract than its lower-level counterparts in hierarchical arrangements.

Nonanalytic Concept Formation

Cognitive processes that implicitly acquire knowledge of a complex structure during the memorization of examples.

Reber

Refers to psychologist Arthur Reber, known for his work on implicit learning and the cognitive unconscious, particularly how people can learn complex information without being aware of the learning process.

Semantic Priming

A phenomenon in which exposure to one word (e.g., nurse) facilitates the recognition of semantically related words (e.g., doctor).