Clooney Company Has the Following Expected Pattern of Collections on Credit

question 125

Multiple Choice

Clooney Company has the following expected pattern of collections on credit sales: 70 percent collected in the month of sale,15 percent in the month after the month of sale,and 14 percent in the second month after the month of sale.The remaining 1 percent is never collected.
At the end of May,Clooney Company has the following accounts receivable balances:
From Apil sales              $21,00000
From May sales              48,000
Clooney's expected sales for June are $150,000.How much cash will Clooney Company expect to collect in June?

• A)$127,400
• B)$129,000
• C)$148,600
• D)$152,520

Recognize Maslow's contribution to humanistic psychology and his role within the movement.

Appreciate the relevance and critique of Maslow's concept of metaneeds.

Understand Rogers’s concept of the actualization tendency in human development.

Recognize the roots and influences on Rogers's personality theory.

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Definitions:

Operating Activities

Day-to-day actions that are involved in running a company, such as selling products, managing expenses, and paying employees, which are reflected in the cash flow statement.

Direct Method

A cash flow statement preparation approach that lists major categories of gross cash receipts and payments, offering a more straightforward view of a company’s cash flow from operational activities.

Indirect Method

A way to report cash flows from operating activities by starting with net income and adjusting for non-cash transactions.