Quattro Began Operations in April of This Year

question 47

Multiple Choice

Quattro began operations in April of this year.It makes all sales on account,subject to the following collection pattern: 30% are collected in the month of sale;60% are collected in the first month after sale;and 10% are collected in the second month after sale.If sales for April,May,and June were $60,000,$80,000,and $70,000,respectively,what were the firm's budgeted collections for April?

• A)$18,000.
• B)$21,000.
• C)$60,000.
• D)$65,000.
• E)Some other amount.

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Definitions:

Hostile Takeover

An acquisition attempt by a company or investor to obtain control of another company against the wishes of the target company's management and board of directors.

Takeover Bid

An offer made to acquire a controlling stake or all of a company's shares, either friendly or hostile.

Consolidation

The process of combining two or more companies into a single entity to enhance competitive strength and efficiency.

Merger

The combination of two or more companies into a single entity, with the aim of achieving greater efficiencies or market share.