The Model Company Is to Begin Operations in April

question 36

Multiple Choice

The Model Company is to begin operations in April.It has budgeted April sales of $30,000,May sales of $34,000,June sales of $40,000,July sales of $42,000,and August sales of $38,000.Note that 10% of each month's sales will represent cash sales;75% of the balance will be collected in the month following the sale,17% the second month,6% the third month,and the balance is bad debts.What is the amount of cash to be collected in the month of July?

• A) $34,022.
• B) $38,022.
• C) $42,000.
• D) $37,580.

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Definitions:

Extinction Rate

The rate at which species become extinct over a certain period of time, an important measure in the study of biodiversity and conservation biology.

Biogeographic Province

A region defined by its climatic and geographical features, harboring a distinct set of flora and fauna.

Neotropical Region

A biogeographic region that includes South and Central America, the Mexican lowlands, the Caribbean islands, and southernmost parts of Florida, characterized by its distinct fauna and flora.

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, contributing to the greenhouse effect and global warming.