Schoof Inc

question 50

Multiple Choice

Schoof Inc.expects to have sales of $30,000 in January,$35,000 in February,and $40,000 in March.If 20% of sales are for cash,40% are credit sales paid in the month following the sale,and another 40% are credit sales paid 2 months following the sale,what are the cash receipts for the firm in March?

• A)$29,151
• B)$30,685
• C)$32,300
• D)$34,000

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Definitions:

Illegal

Activities or actions that are prohibited by law and subject to punishment, including civil or criminal penalties.

Consideration

Something of value that is exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Gift

Something given voluntarily without payment in return, often as a symbol of affection or goodwill.

Contract

An agreement between multiple parties that is recognized and can be enforced by the legal system.