Jackson Company Has Developed the Following Sales Projections for the Calendar

question 13

Multiple Choice

Jackson Company has developed the following sales projections for the calendar year:
$$\begin{array} { | l r | } \hline \text { May } & \$ 100,000 \\\hline \text { June } & 120,000 \\\hline \text { Juby } & 140,000 \\\hline \text { August } & 160,000 \\\hline \text { September } & 150,000 \\\hline \text { October } & 130,000 \\\hline\end{array}$$ Normal cash collection experience has been that 50% of sales is collected during the month of sale and 45% in the month following the sale.The remaining 5% of sales are never collected.Jackson's budgeted cash collections for the third calendar quarter are: (CMA adapted)

• A) $450,000.
• B) $440,000.
• C) $414,000.
• D) $360,000.

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Definitions:

Non-Current Assets

Assets intended for use over an extended time, beyond the next fiscal year, such as property, plant, and equipment.

Entire Class

A group of securities or assets that share the same rights and characteristics.

Acquisition Date

The specific date on which one company gains control over another, marking the point from which the acquiree's financial performance starts being included in the acquirer's financial statements.

Consideration

The value, typically expressed in monetary terms, given in exchange for goods, services, or for entering into a contract.