Ballentine Company Expects Sales for June,July,and August of $48,000,$54,000,and $44,000,respectively

question 51

Multiple Choice

Ballentine Company expects sales for June,July,and August of $48,000,$54,000,and $44,000,respectively.Experience suggests that 40% of sales are for cash and 60% are on credit.The company collects 50% of its credit sales in the month following sale,45% in the second month following sale,and 5% are not collected.What are the company's expected cash receipts for August from its current and past sales?

• A)$29,160.
• B)$46,760.
• C)$61,160.
• D)$66,200.
• E)$78,800.

Understand the role of innovation in business success and its relation to business size.

Recognize the employment patterns and contributions of small businesses in the job market.

Understand the challenges faced by small businesses, including financing, taxation, and government regulations.

Appreciate the diversity of ownership and the varied challenges they face in today’s market.

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Definitions:

Capital Gains Rate

The capital gains rate is the tax rate applied to profits from the sale of assets or investments, which can vary based on the asset's holding period and the taxpayer's income level.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price, used by investors to evaluate the return on a dividend-paying stock.

Common Stock Quote

The current price at which a share of common stock is trading on the stock market.

Dividends

Profits paid out by a corporation to its shareholders as distributions.