Leaverton's Forecast of Sales Is as Follows: July, $60,000; August

question 51

Multiple Choice

Leaverton's forecast of sales is as follows: July, $60,000; August, $90,000; September, $130,000. Sales are normally 80 percent cash and 20 percent credit in any month. Credit sales are collected in full in the following month. Merchandise cost averages 60 percent of sales price. The company desires an inventory as of September 30 of $52,000. The inventory as of June 30 was $25,000. The July 31 balance of accounts receivable will be

• A) $12,000.
• B) $48,000.
• C) $18,000.
• D) $0.

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Definitions:

Demand for Insulin

The requirement or need for insulin, a vital hormone used in the treatment of diabetes, by patients or healthcare providers.

Large Screen TV

A type of television with a screen size typically larger than 55 inches, popular for enhancing viewing experiences.

More Inelastic

Describing a situation where the demand for a good or service is less sensitive to changes in price, indicating consumers are less likely to reduce their quantity demanded as the price increases.

Elastic Demand

A situation in which the quantity demanded of a good or service significantly changes in response to a change in price.