The Following Sales Budget Has Been Prepared: Collections of Credit

question 8

Multiple Choice

The following sales budget has been prepared: Collections of credit sales are 50% in the month of sale,40% in the month following sale,and 10% two months following sale.No uncollectible accounts are expected.What are the estimated cash collections in November?

• A)$130,000
• B)$197,000
• C)$327,000
• D)$340,000

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Definitions:

Pascal

A unit of pressure in the International System of Units (SI), defined as one newton per square meter.

Hydraulic Circuits

Networks designed to use hydraulic fluid to transmit energy from one component to another within a hydraulic system.

Area Multiplied

The process of calculating the extended surface or space by multiplying dimensions, typically used in geometric calculations.

Work

When effort or force produces an observable result (movement), work results. In a hydraulic circuit, this means moving a load. To produce work in a hydraulic circuit, there must be flow. Work is measured in units of force multiplied by distance, for example, pound-feet.