Answer the Following Questions Using the Information Below

question 196

Multiple Choice

Answer the following questions using the information below:
The following information pertains to the January operating budget for Canberra Corporation.
∙ Budgeted sales for January $100 000 and for February $200 000.
∙ Collections for sales are 70% in the month of sale and 30% the next month.
∙ Gross margin is 30% of sales.
∙ Administrative costs are $10 000 each month.
∙ Beginning accounts receivable is $20 000.
∙ Beginning inventory is $14 000.
∙ Beginning accounts payable is $60 000.(All from inventory purchases. )
∙ Purchases are paid in full the following month.
∙ Desired ending inventory is 20% of next month's cost of goods sold (COGS) .
-At the end of January,budgeted accounts receivable is:

• A)$20 000.
• B)$30 000.
• C)$60 000.
• D)None of these answers are correct.

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Definitions:

Task Segmentation

The process of dividing a task into smaller, more manageable parts to improve efficiency and performance.

Simulation Exercises

Training and development activities that replicate real-life situations for the purpose of practice, learning, or evaluation.

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A traditional form of instruction where a teacher addresses a large group of students, primarily disseminating information verbally.