Exhibit 9-2
Bowline Inc -Refer to Exhibit 9-2

question 24

Multiple Choice

Exhibit 9-2
Bowline Inc.is a distributor which sells one product for $60 per unit.Bowline pays $33 to buy the product.In addition,fixed costs total $42,000 per month.Bowline wishes to maintain an inventory at the end of each month equal to 25% of the next month's projected sales.Purchases are paid in the month after purchase.
Bowline makes all sales on credit and collects 30% in the month of sale and 70% in the month after sale.Budgeted monthly sales in units for the first five months of 2013 are as follows:
$\begin{array}{ll}\text { January } & 20,000 \text { units } \\\text { February } & 25,000 \text { units } \\\text { March } & 28,000 \text { units } \\\text { April } & 30,000 \text { units } \\\text { May } & 26,000 \text { units }\end{array}$
-Refer to Exhibit 9-2.What will accounts receivable be at the end of February?

• A)$450,000
• B)$1,500,000
• C)$1,050,000
• D)$375,000
• E)None of the answer choices is correct.

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Definitions:

Masking Stimulus

A stimulus that inhibits the perception of another stimulus, making it difficult or impossible to process on a conscious level.

Subliminal Messages

Stimuli or signals below the threshold of conscious awareness, designed to influence thoughts, feelings, or actions without being directly noticed.

Conscious Perception

the awareness of one's environment and one's own sensations, thoughts, and feelings at any given moment.

Absolute Threshold

The minimum intensity of stimulation that must occur before you can experience a sensation.