Bonkowski Corporation Makes One Product and Has Provided the Following

question 46

Multiple Choice

Bonkowski 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:
30% in the month of the sale
70% 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 30% of the following month's sales. The ending raw materials inventory should equal 10% of the following month's raw materials production needs.
-The expected cash collections for February is closest to:

• A) $970,000
• B) $1,028,200
• C) $349,200
• D) $679,000

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Definitions:

Two-tailed Test

A two-tailed statistical hypothesis test that examines if a sample falls outside a specific range of values, testing for both exceeding and falling short of this range.

Expected Value

The mean value of a random variable, computed by multiplying each possible value by its probability and summing up these products.

Test Statistic

A value calculated from sample data during a hypothesis test used to determine the likelihood of the null hypothesis being true.

Critical Value(s)

The thresholds in statistical hypothesis testing that define the boundary or boundaries for rejecting the null hypothesis.