Fashion Jeans, Inc

question 11

Multiple Choice

Fashion Jeans, Inc.sells two lines of jeans; Simple Life and Fancy Life.Simple Life sells for $85, and Fancy Life sells for $100.The company sells all of its jeans on credit and estimates that 60% is collected in the month of the sale, 35% is collected in the following month, and the rest is considered to be uncollectible.The estimated sales for Simple are: January, 20,000 jeans; February, 27,500 jeans; and March, 25,000 jeans.The estimated sales for Fancy are: January, 18,000 jeans; February, 19,000; and March, 20,500 jeans.What are the expected cash receipts for the month of March?

• A)$3,988,125
• B)$2,505,000
• C)$2,125,000
• D)$4,175,000

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Definitions:

Organizing Process

The method of arranging resources and tasks to achieve objectives efficiently and effectively.

Corporate Culture

The shared values, beliefs, ethics, and practices that characterize an organization and guide its employees.

Vision

A strategic declaration of what an organization aspires to achieve in the future, guiding its direction and decision-making.

Free-Rein Leadership

Management style of leaders who believe in minimal supervision and leave most decisions to their subordinates.