Memphis Company Anticipates Total Sales for April, May, and June

question 57

Multiple Choice

Memphis Company anticipates total sales for April, May, and June of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are not collected.
-Compute the amount of cash received from credit sales during the month of May.

• A) $592,500.
• B) $561,500.
• C) $890,000.
• D) $652,500.
• E) $817,500.

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Definitions:

Nonpoint Source

Pollution that cannot be traced back to a single source or location, often resulting from runoff that collects pollutants from widespread areas.

Pesticides

Chemical agents used to kill or control pests that damage crops and spread diseases, including insecticides, herbicides, and fungicides.

Fertilizer Runoff

The movement of water-soluble components of fertilizer from agricultural lands to nearby water bodies, potentially causing nutrient pollution and algal blooms.

Smokestack

A large, tall chimney through which combustion gases and smoke are discharged, commonly seen in industrial plants and ships.