Use the Following to Answer Questions

question 69

Multiple Choice

Use the following to answer questions
Minuteman Company's sales were budgeted for the first six months of its fiscal year as follows:
All sales are on credit and management estimates that 55% will be collected in the month following the sale, with the remaining 45% collected the second month following the sale.
-Cash collections during June are estimated at:

• A)$376,000
• B)$384,000
• C)$491,500
• D)$550,000

---

Definitions:

Previous Year's Profits

The net earnings of an organization in the financial year immediately preceding the current one.

Gainsharing Plan

A performance-based compensation strategy that allows employees to share in the company's savings or gains, often from productivity improvements.

Cost Data

Information related to the expenses incurred for producing a product or delivering a service.

Personal Interactions

The exchange of information and feelings between individuals or groups, often impacting the development of relationships.