June Sales Were $1000 While Projected Sales for July and August

question 2

Multiple Choice

June sales were $1000 while projected sales for July and August were $6400 and $5000, respectively. Sales are 40% cash and 60% credit. All credit sales are collected in the month following the sale. What are the total expected collections for July?

• A)$5160
• B)$3160
• C)$5560
• D)$4240

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company to be reinvested in its core business or to pay debt.

Business Expansion

The process of increasing the scale or scope of a company's operations, often through new ventures, acquisitions, or increased market share.

Retained Earnings

The portion of a company's profits that are kept or retained and not paid out as dividends to shareholders.

Retained Earnings

The amount of net earnings remaining for the company after distributing dividends to its shareholders.