A Firm Has Projected Sales in May, June, and July

question 177

Multiple Choice

A firm has projected sales in May, June, and July of $100, $200, and $300, respectively. The firm makes 20 percent of sales for cash and collects the balance one month following the sale. The firm's total cash receipts in July is ________.

• A) $220
• B) $200
• C) $180
• D) $140

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Definitions:

Reclamation

The process of restoring land that has been mined, logged, or used for industrial purposes back to its natural state or ensuring it is usable for a different purpose.

Accumulated Depreciation

The cumulative value of depreciation expense assigned to a physical asset from the time it was first utilized.

Major Class of Asset

Represents categories of assets grouped based on their similar financial characteristics, such as cash, inventory, property, etc.

Sum-Of-The-Years'-Digits

A method of depreciation that accelerates the write-off of assets by applying a decreasing fraction to the depreciable amount each year.