Apple Two Enterprises Expects to Generate Sales of $5,950,000 for Fiscal

question 101

Multiple Choice

Apple Two Enterprises expects to generate sales of $5,950,000 for fiscal 2002;sales were $3,450,000 in fiscal 2001.Assume the following figures for the fiscal year ending 2001: cash $70,000;accounts receivable $250,000;inventory $400,000;net fixed assets $520,000;accounts payable $235,000;and accruals $155,000.Use the percent-of-sales method to forecast cash for the fiscal year ending 2002.

• A)$120,725
• B)$75,003
• C)$216,418
• D)$319,604

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Definitions:

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or segments.

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a product.

Monopolistic Competitor

A market structure where many companies sell products that are similar but not identical, allowing for some degree of market power.

Short Run

The length of time it takes all fixed costs to become variable costs.