Lee Carter Inc

question 83

Multiple Choice

Lee Carter Inc.forecast of sales is as follows: July,$50,000;August,$80,000;September,$150,000.Sales are normally 75 percent cash and 25 percent credit.Credit sales are collected in full in the following month.Merchandise cost averages 70 percent of sales price.The company desires an inventory as of September 30 of $50,000.The inventory as of June 30 was $30,000.The accounts receivable had zero balance on June 30.
-Total cash receipts for August of Lee Carter will be

• A)$12,500.
• B)$60,000.
• C)$47,500.
• D)$72,500.

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Definitions:

Cyanosis

A bluish or purplish discoloration of the skin and mucous membranes due to insufficient oxygen in the blood.

Erythema

Redness of the skin or mucous membranes, often caused by dilation and congestion of the capillaries, typically a sign of inflammation or infection.

Ecchymosis

The appearance of a large, discolored area on the skin, caused by bleeding underneath, typically resulting from bruising.

Skin Mobility

The ease with which skin can be moved or lifted, often assessed in the evaluation of edema, dehydration, or certain skin conditions.