Figure 8-5 the Following Forecasted Sales Pertain to Cordon Corporation

question 112

Multiple Choice

Figure 8-5 The following forecasted sales pertain to Cordon Corporation:
Collection pattern:
65 percent in month of sale
35 percent in month following sale
Cordon 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.
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Refer to Figure 8-5.How many dollars are expected to be collected in September?

• A) $7,000
• B) $40,000
• C) $33,000
• D) $21,000

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