A Company's History Indicates That 20% of Its Sales Are

question 7

Multiple Choice

A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 20% in the month of the sale, 50% in the next month, 25% the following month, and 5% is uncollectible. Projected sales for December, January, and February are $60,000, $85,000, and $95,000, respectively. The February expected cash receipts from all current and prior credit sales is:

• A) $61,200
• B) $57,000
• C) $66,400
• D) $90,250

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Definitions:

Tukey's Multiple Comparison

A statistical method used to find which means among a set of means differ from the rest after conducting an ANOVA test.

Fisher's LSD

A statistical method used to compare means while controlling for familywise error rate in the context of an ANOVA.

Pooled Variance Estimator

An estimate of variance that combines the variances from two or more samples, assuming that they come from populations with the same variance.

MSE from ANOVA

Mean Square Error derived from Analysis of Variance, indicating the average of the squares of the deviations of observations from their group means.