Fresplanade Co

question 79

Multiple Choice

Fresplanade Co.had the following historical pattern for its credit sales:
75% collected in the month of sale
12% collected in the first month after sale
8% collected in the second month after sale
3% collected in the third month after sale
2% uncollectible
The sales on open account (credit sales) have been budgeted for the last six months of the year as shown below:
July $72,000
August $84,000
September $96,000
October $108,000
November $120,000
December $102,000
The estimated cash collection during September from July,August,and September accounts receivable is:

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

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Definitions:

Board of Directors

A group of individuals elected to represent shareholders and make key decisions regarding the company's management and policy.

Dividend Yield

Dividend yield is a financial metric indicating the annual dividend payout of a company as a percentage of its share price.

Earnings per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.