Julia's Candy Co

question 119

Multiple Choice

Julia's Candy Co.reports the following information from its sales account and sales budget:
Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale.The total amount of cash expected to be received from customers in September is:

• A)$ 30,000.
• B)$ 82,500.
• C)$112,500.
• D)$120,000.
• E)$202,500.

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Definitions:

Investments

Items or resources purchased with the intention of earning income or increasing in value as time goes on.

Short Payback Period

A time frame in which an investment is expected to be recovered quickly, indicating potential attractiveness.

Revenue

The cumulative earnings generated by a business from sales of products or offering of services over a designated period.

Break-Even Time

The period required for financial returns to cover the initial investment or costs, reaching a point where no profit or loss is incurred.