Avril Company Makes Collections on Sales According to the Following

question 39

Multiple Choice

Avril Company makes collections on sales according to the following schedule:
30% in the month of sale
60% in the month following sale
8% in the second month following sale
The following sales are expected:
What should be the budgeted cash collections in March?

• A) $105,000.
• B) $110,000.
• C) $110,800.
• D) $113,000.

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Definitions:

Market Value

The open market value at which a service or asset is available for trading.

Shares Outstanding

The total number of shares of stock that are currently owned by investors, including shares held by institutional investors and restricted shares owned by the company’s insiders.

Reverse Stock Split

A decrease in the number of a corporation's outstanding shares, which increases the share price proportionally.

Market Value

The cost at which you can currently buy or sell a service or asset in the open market.