Richards Corporation Has the Following Budgeted Sales for the First

question 171

Multiple Choice

Richards Corporation has the following budgeted sales for the first half of next year: The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: The accounts receivable balance on January 1 is $70,000. Of this amount, $60,000 represents uncollected December sales and $10,000 represents uncollected November sales. What is the budgeted accounts receivable balance on May 30?

• A)$81,000
• B)$68,000
• C)$60,000
• D)$141,000

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Definitions:

Statistical Analysis

The collection, examination, interpretation, presentation, and organization of data using statistical methods and techniques.

Tolerance Ranges

The acceptable or permissible limits within which a product, process, or result can vary without affecting its quality or functionality.

Quality of Product

The degree to which a product meets the specified criteria and satisfies the customer's expectations.

Sigma

A statistical term that measures how far a given process deviates from perfection. The term is notably used in Six Sigma methodology to measure the number of defects in a process.