Kelita Ltd, Projects Sales for Its First Three Months of Operation

question 37

Multiple Choice

Kelita Ltd, projects sales for its first three months of operation as follows: Inventory on 1^st October is $40,000. Subsequent beginning inventories should be 40% of that month's cost of goods sold. Goods are priced at 140% of their cost. 50% of purchases are paid for in the month of purchase; the balance is paid in the following month. It is expected that 50% of credit sales will be collected in the month following sale, 30% in the second month following the sale, and the balance the third month. A 5% discount is given if payment is received in the month following sale.
What are the anticipated cash receipts for November?

• A) $107,500
• B) $105,000
• C) $110,000
• D) $160,000

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Definitions:

Internal Locus

The belief that one has control over their life and the outcomes of their actions, as opposed to external forces.

Control

In experimental research, the standard by which experimental observations are compared, or the ability to direct influence or regulate a situation or mechanism.

Negative Punishment

A method in behavioral psychology where a desirable stimulus is removed following an unwanted behavior, aiming to decrease the likelihood of the behavior occurring again.

Reinforcement Value

The degree to which an outcome or reward is desirable or valued by an individual, influencing their motivation and behavior.