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:

Grand Apartheid

The systematic and institutionalized racial segregation and discrimination enforced by the South African government before 1994.

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Fatalities that occur while an individual is being apprehended, detained, or in the custody of law enforcement.

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The process of revising and improving an existing system, product, or structure for enhanced functionality or performance.

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The federal executive department responsible for enforcing law and administering justice within the United States.