Cool Looks Imports and Distributes Sunglasses in Southern California

question 1

Multiple Choice

Cool Looks imports and distributes sunglasses in Southern California. The company's peak selling season has just passed and forecasted sales for the next few months is shown in the top row of the table. 40% of sales are cash and are collected in the month of the sale. 60% of sales are on credit, and are collected in the month following the sale. Cool Looks purchases merchandise one month in advance of sales and the cost of goods sold is 70% of sales. Cool Looks' suppliers are paid one month after the purchase. General and administrative expenses are $6,750 a month. Interest payments are $200 per month. Cool Looks will begin September with a cash balance of $10,000.
Cool Looks
Sales Forecast and Cash Budget

-Referring to Cool Looks,what are total cash inflows in September?

• A) $18,000
• B) $20,000
• C) $30,000
• D) $38,000
• E) $50,000

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Definitions:

Ethical Decisions

Choices made based on moral principles and values, considering the impact on others and striving for fairness and integrity.

Principle of Justice

A fundamental moral guideline for ensuring fairness and equitable treatment of individuals within society.

Sales Pressure

The stress or tension that arises from attempting to persuade customers to purchase a product or service within certain time limits or under challenging conditions.

Employee Rights

Rights desired by employees regarding their job security and the treatment administered by their employers while on the job, irrespective of whether those rights are currently protected by law or collective bargaining agreements of labor unions.