Sessional Company Finds That Typically 30% of a Month's Sales

question 82

Multiple Choice

Sessional Company finds that typically 30% of a month's sales are paid in cash. Payments on accounts receivable are 60% in the month of sale and 38% in the month following sale. Budgeted sales for June are $100,000, for July are $140,000, and for August are $120,000. What are the total cash receipts budgeted for July?

• A) $85,400
• B) $122,000
• C) $127,400
• D) $140,000

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Definitions:

Cyclic Hemiacetal

A cyclic organic compound formed from the reaction of an alcohol with an aldehyde or ketone, characterized by a carbon atom bonded to an oxygen (in hydroxy group), another oxygen (in ether group), a hydrogen, and an alkyl or aryl group.

Erythro

A descriptor in stereochemistry, referring to molecules in which two substituents are on the same side in a Fischer projection.

Fischer Projection

A method for representing the three-dimensional configuration of molecules on a two-dimensional plane, used especially for carbohydrates.

α-Pyranose

A form of a sugar molecule where the ring structure is a six-membered pyran ring, with the anomeric carbon atom in the alpha configuration.