Here Are Some Important Figures from the Budget of Wexter

question 39

Multiple Choice

Here are some important figures from the budget of Wexter Enterprises for the second quarter of 2013: The company predicts that 2 percent of its credit sales will never be collected,45 percent of its sales will be collected in the month of sale,and the remaining 53 percent will be collected in the following month.Credit purchases will be paid in the month following the purchase.
In March 2013,credit sales were $387,000 and credit purchases were $279,500.What is the ending cash balance for April if the beginning cash balance was $97,500?

• A)$87,410
• B)$90,060
• C)$92,800
• D)$94,440
• E)$97,230

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Definitions:

Product Samples

Free or low-cost portions of a product distributed to consumers to try before making a purchase decision, serving as a promotional tool.

Premiums

Items offered for free or at a reduced price as an incentive to purchase a product or to reward loyal customers.

Sales Promotion Expenditures

The financial investment allocated towards marketing strategies and campaigns designed to increase immediate consumer demand and stimulate sales of a product or service.

Consumer-Oriented Sales Promotions

Marketing strategies aimed at inducing consumers directly to purchase products through methods such as coupons, discounts, and contests.