June Sales Were $40,000 While Projected Sales for July and August

question 18

Multiple Choice

June sales were $40,000 while projected sales for July and August were $50,000 and $60,000, respectively. Sales are 40% cash and 60% credit. All credit sales are collected in the month following the sale. Calculate expected collections for July.

• A)$36,000
• B)$44,000
• C)$50,000
• D)$54,000

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Definitions:

Current Asset

Current assets are short-term financial resources that are expected to be converted into cash, sold or consumed within one year or within the business's operating cycle, whichever is longer.

Current Liability

A company's debts or obligations that are due to be paid to creditors within one year.

Loan Requests

are formal applications made by individuals or companies to borrow money from financial institutions.

Financial Statements

Financial Statements are written records that convey the business activities and the financial performance of a company, including the balance sheet, income statement, and cash flow statement.