Fresplanade Co

question 132

Multiple Choice

Fresplanade Co. had the following historical collection pattern for its credit sales:

75% collected in the month of sale
12% collected in the first month after month of sale
8% collected in the second month after month of sale
3% collected in the third month after month of sale
2% uncollectible

The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
The estimated cash collections during July from credit sales made in July by Fresplanade Co. is:

• A) $83,160.
• B) $79,380.
• C) $87,840.
• D) $54,000.
• E) $71,640.

Understand the implications of fair use in copyright law.

Identify the ethical obligations employees have towards their employers.

Understand the standards and conditions that justify whistle-blowing according to ethicists.

Understand the ethical considerations in obtaining consent for photography during events.

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Definitions:

Total Liabilities

Total Liabilities represent the sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and mortgages.

Note Payable

A financial obligation or loan evidenced by a written promise to pay a specific amount on a future date or over a certain period.

Current Liability

Financial obligations or debts that a company is expected to settle within one year or within its normal operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle, whichever is longer.