Use the Following to Answer Questions

question 24

Multiple Choice

Use the following to answer questions
Hepburn Corporation's sales price is $30 per unit. Unit sales information is presented below:
Management estimates that 2% of credit sales are uncollectible. Of the remaining credit sales, 30 percent are collected in the month of sale and the remainder in the following month. The March 31 ending inventory is 5,500 units, and Hepburn wants to have 10% of the next month's sales in ending finished goods inventory.
-What are Hepburn Corporation's expected cash collections for April?

• A)$2,725,000
• B)$1,350,000
• C)$1,560,000
• D)$1,330,200

Understand different types of credit and their legal frameworks.

Understand the process and importance of credit dispute under consumer protection laws.

Appreciate the advantages and disadvantages of consumer credit.

Understand the general principles of measuring credit capacity.