Benjamin Corporation Began Its Operations on September 1 of the Current

question 19

Multiple Choice

Benjamin Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $300,000, and $420,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. Refer to the information provided for Benjamin Corporation. The cash collections from accounts receivable in September are:

• A) $175,000.
• B) $140,000.
• C) $190,000.
• D) $168,000.

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Definitions:

Financial Statements

Documents that report the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.

Land Title

A legal document or evidence that proves ownership of a piece of land.

Solicitor-Client Privilege

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Confidential Information

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