Information Pertaining to Yekstop Corp

question 45

Multiple Choice

Information pertaining to Yekstop Corp.'s sales revenue is presented below:Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices.

Budgeted December cash payments by Yekstop Corp. for December inventory purchases are:

• A) $67,995.
• B) $103,500.
• C) $158,655.
• D) $241,500.
• E) $289,440.

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Definitions:

Individual Buyers

Consumers who purchase goods or services for personal use, not for manufacturing, resale, or commercial purposes.

Interactive Marketing

A marketing approach that involves a two-way interaction between a brand and its customers, often facilitated by digital tools.

Choiceboards

Online systems that allow individuals to customize the features of a product or service they wish to purchase.

Niche Marketspaces

Specialized market segments with specific needs and preferences that are distinctly different from the broader market, allowing businesses to target more focused audiences.