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

question 72

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
Purchases for the month of May are expected to be:

• A)$21,000
• B)$15,000
• C)$30,000
• D)$10,500

---

Definitions:

Behaviors

Actions or reactions of an individual or group in response to external or internal stimuli, often studied in psychology and sociology to understand and predict patterns.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including natural, social, and cultural factors.

Self-confidence

A person's belief in their own abilities and judgement, which can influence their performance and the way they are perceived by others.

Risk-taking

The willingness to engage in actions that involve uncertainty and potential loss in pursuit of potential rewards.