Exhibit 9-1
Sporting Inc -Refer to Exhibit 9-1

question 44

Multiple Choice

Exhibit 9-1
Sporting Inc.is a distributor which sells one product for $100 per unit.Sporting pays $60 to buy the product.In addition,fixed costs total $60,000 per month.Sporting wishes to maintain an inventory at the end of each month equal to 30% of the next month's projected sales.Purchases are paid in the month after purchase.
Sporting makes all sales on credit and collects 40% in the month of sale and 60% in the month after sale.Budgeted monthly sales in units for the first five months of 2013 are as follows:
$\begin{array}{ll}\text { January } & 10,000 \text { units } \\\text { February } & 15,000 \text { units } \\\text { March } & 18,000 \text { units } \\\text { April } & 20,000 \text { units } \\\text { May } & 16,000 \text { units }\end{array}$
-Refer to Exhibit 9-1.What will cash collections be in April?

• A)$1,880,000
• B)$2,060,000
• C)$2,000,000
• D)$1,920,000
• E)None of the answer choices is correct.

---

Definitions:

Turnover

The rate at which a company's inventory or assets are replaced or sold within a specific period.

ROI

Return on Investment; a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of multiple investments.

Combined Turnover

The sum total of sales or revenues generated by different segments, departments, or subsidiaries of a company within a specified period.

Investment Opportunity

An option available to individuals or companies to invest capital with the expectation of generating a return.