A Company Is Formulating Its Plans for the Coming Year,including

question 59

Multiple Choice

A company is formulating its plans for the coming year,including the preparation of its cash budget.Historically,the company's sales are 30% cash.The remaining sales are on credit with the following collection pattern:
$$\begin{array} { | l | c | } \hline \text { Collections on Account } & \text { Percentage } \\\hline \text { In the month of sale } & 40 \% \\\hline \text { In the month tollowing the sale } & 58 \% \\\hline \text { Uncollectible } & 2 \% \\\hline\end{array}$$
Sales for the first 5 months of the coming year are forecast as follows:
$$\begin{array} { | l | r | } \hline \text { January } & \$ 3,500,000 \\\hline \text { February } & 3,800,000 \\\hline \text { March } & 3,600,000 \\\hline \text { April } & 4,000,000 \\\hline \text { May } & 4,200,000 \\\hline\end{array}$$ For the month of April,the total cash receipts from sales and collections on account would be: (CIA adapted)

• A) $3,729,968.
• B) $3,781,600.
• C) $4,025,200.
• D) $4,408,000.

Recognize the dynamics and current trends impacting American families and households.

Identify global and national population trends and their social and economic implications.

Appreciate the role of millennials and their influence on environmental and societal change.

Define and explain key concepts related to culture, values, and consumer behavior within the United States.

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Definitions:

Utility Function

Describes how a consumer ranks different baskets of goods based on the level of satisfaction or utility derived from them.

Expected Utility

A concept in economics that represents a consumer's preference for certain outcomes, quantified as the weighted average of utility over all possible outcomes.

Probability

The quantification of how probable it is for an event to take place, indicated by a value ranging from 0 to 1.

Strictly Convex Preferences

Strictly convex preferences indicate a consumer's increasing marginal rate of substitution, reflecting a stronger preference for balanced bundles of goods over extremes.