Use the Information Below to Answer the Following Question(s)

question 92

Multiple Choice

Use the information below to answer the following question(s) .
Three Sisters Catering prepared the following sales budget:

Credit collections are 35% in the month of sale, 55% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible.
-What are the total cash collections in June at Three Sisters Catering?

• A) $38,000
• B) $85,600
• C) $96,900
• D) $94,400

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Definitions:

Earnings Quality

An assessment metric that evaluates the degree to which a company's earnings are derived from sustainable sources and are repeatable, controllable, and bankable.

Multi-Step Income

Multi-step income statements provide a detailed breakdown of revenues, expenses, and profit, distinguishing between operating and non-operating activities.

Cash Flow Statement

A document highlighting the impact of adjustments in balance sheet items and earnings on cash and cash equivalents, divided into operating, investing, and financing sections.

Abnormal Earnings

The profits that exceed or fall short of the expected normal rate of return for a business.