A Company's History Indicates That 20% of Its Sales Are

question 184

Multiple Choice

A company's history indicates that 20% of its sales are for cash and the rest are on credit.Collections on credit sales are 30% in the month of the sale,50% in the next month,and 15% the following month.Projected sales for January,February,and March are $60,000,$85,000 and $95,000,respectively.The March expected cash receipts from current and prior credit sales is:

• A)$57,000
• B)$63,080
• C)$64,000
• D)$80,750
• E)$90,250

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Definitions:

Wholesaler-Sponsored Voluntary Chains

A retailing strategy where independent retailers band together under a wholesaler's brand and distribution system to compete with larger chains.

Franchises

Business model that allows individuals or entities (franchisees) to operate a business under the established brand and operational system of the franchisor in exchange for a fee and ongoing royalties.

Self-Service

refers to a system or process that allows customers to perform services for themselves without direct assistance from staff, commonly seen in retail, banking, and online platforms.

Zipcar

A car-sharing company that allows individuals to rent cars by the hour or day, based on an online reservation system.