Figure 8-5 The Following Forecasted Sales Pertain to Spyware Corporation

question 126

Multiple Choice

Figure 8-5
The following forecasted sales pertain to Spyware Corporation:
65 percent in month of sale
35 percent in month following sale
Accounts receivable as of August 31 $7,000
Finished goods inventory as of August 31 1,500 units
Spyware Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25 percent of the next month's sales.
-Refer to Figure 8-5. How many dollars are expected to be collected in December?

• A) $30,500
• B) $37,000
• C) $26,500
• D) $23,500

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