Oakton Furniture Provided the Following Information Relevant to Its Sales

question 95

Multiple Choice

Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2 $\begin{array}{|l|l|r|r|r|}\hline& \text { Dec. Year } 1 &\text { Jan. Year } 2 &\text { Feb. Year } 2 & \text { Mar. Year } 2 \\\hline & \text { (Actual) } & \text { (Budgeted) }& \text { (Budgeted) }& \text { (Budgeted) } \\\hline \text {Credit sales } &\$ 120,000 & \$ 280,000 & \$ 310,000 & \$ 220,000 \\\hline \text { Cash sales } &\$ 20,000 & \$ 50,000 & \$ 60,000 & \$ 24,000 \\\hline\end{array}$ Based on the company's collection history,42% of credit sales are collected in month of sale and the remainder is collected in the following month.Cash collections in January from December credit sales would be:

• A) $69,600.
• B) $81,200.
• C) $72,000.
• D) $84,000.

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Definitions:

Sampling Variation

The variability in statistical measurements that occurs when different samples are taken from the same population.

Difference

Implies a point or way in which people or things are not the same.

Standard Deviation

A measure in statistics that quantifies the amount of variation or dispersion of a set of numeric values.

Sample Scores

Quantitative values or measurements obtained from a subset of a population for research or analysis purposes.