Busch Enterprises Has Budgeted Sales for the Months of September

question 52

Multiple Choice

Busch Enterprises has budgeted sales for the months of September and October at $120,000 and $150,000,respectively.Monthly sales are 60% credit and 40% cash.Of the credit sales,25% are collected in the month of sale and 75% are collected in the following month.What are the October cash collections from customers?

• A)$162,000
• B)$ 76,500
• C)$136,500
• D)$ 82,500

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Definitions:

Lowest Terms

The most reduced form of a fraction, where the numerator and denominator are the smallest whole numbers possible.

Mixed Numbers

Numbers consisting of an integer and a proper fraction, representing sums of whole numbers and fractions.

Improper Fractions

Fractions where the numerator is greater than or equal to the denominator, representing a value of one or more.

Lowest Terms

The simplest form of a fraction, where the numerator and the denominator are reduced to their smallest whole numbers.