Sioux Corporation Is Estimating the Following Sales for the First

question 211

Multiple Choice

Sioux Corporation is estimating the following sales for the first four months of next year:
Sales are normally collected 60% in the month of sale and 40% in the month following the sale.Based on this information,how much cash should Sioux expect to collect during the month of April?

• A) $370,000
• B) $222,000
• C) $119,000
• D) $358,000

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Definitions:

Electrical Loads

Devices or components in an electrical circuit that consume electric power, such as lights, appliances, and machines.

Average Accounting Return

A measure of the profitability of an investment, calculated as the average annual net income divided by the average investment.

Time Value

The concept in finance that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Calculation

The process of determining a numerical result based on mathematical operations or algorithms.