Sevenbergen Corporation Makes One Product and Has Provided the Following

question 136

Multiple Choice

Sevenbergen Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:
Credit sales are collected:
40% in the month of the sale
60% in the following month
Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
The ending finished goods inventory should equal 20% of the following month's sales. The ending raw materials inventory should equal 30% of the following month's raw materials production needs.
-The expected cash collections for August is closest to:

• A) $912,640
• B) $415,840
• C) $496,800
• D) $828,000

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Definitions:

Reporter

A person who researches, writes, and presents information in various media formats, often covering news stories and current events.

Editor

An individual responsible for overseeing and deciding the final content of publications.

CSR Activities

Initiatives and programs undertaken by a company to demonstrate its commitment to operating in an economically, socially, and environmentally sustainable manner.

Habitat For Humanity

An international, non-governmental, and nonprofit organization which was founded to eliminate poverty housing and homelessness by building homes for those in need.