(Appendix 10A)Conner Company Is a Medium-Sized Toy Distributor

question 104

Multiple Choice

(Appendix 10A) Conner Company is a medium-sized toy distributor. Experience has shown that 30% of sales are collected within the month of sale, 60% is collected the month after the sale, and 10% is collected two months after the sale. Inventory on hand at the end of a month is to be 70% of the next month's budgeted sales. Cost of goods sold is 50% of the selling price. Payment for purchases is made in the month after purchase. All other costs are paid in the month incurred. Budgeted amounts are as follows: March April May June July August
Sales $10,000 $20,000 $30,000 $30,000 $50,000 $40,000
Costs:
Wages 1,500 2,000 2,500 1,500
Rent 500 500 500 500
Other 400 500 600 500
Cash receipts for the month of May are expected to be:

• A)$30,000
• B)$21,000
• C)$29,000
• D)$22,000

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Definitions:

Receiving Neuron

A neuron that receives chemical signals (neurotransmitters) from another neuron during neurotransmission.

Retrieval Cue

A retrieval cue is a stimulus or piece of information that aids in the recall of memories, acting as a trigger to bring a memory to consciousness.

Memory Trace

A theoretical construct denoting the physical and/or biochemical change in the brain in response to learning or forming new memories.

Implicit Memory

A type of memory that enables people to perform tasks without conscious awareness of the previous experiences influencing those tasks.