The Company Is in the Process of Preparing a Cash

question 11

Multiple Choice

$\begin{array}{lcc}&\text { Cash Sales} &\text { Credit Sales}\\ \text { January } & £ 80,000 & £ 350,000 \\ \text { February } & 60,000 & 200,000 \\ \text { March } & 50,000 & 145,000 \\ \text {April}& 45,000 & 130,000 \\ \text { May}& 55,000 & 170,000 \\ \text { June}& 50,000 & 150,000 \\\end{array}$ 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:Collections on credit sales:
$60 \%$ in month of sale
$30 \%$ in month following sale
$10 \%$ in second month following sale
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Assume that 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. Given these data, the total cash collected during January would be

• A)£270,000.
• B)£420,000.
• C)£345,000.
• D)£360,000.

Comprehend the legal liabilities and organizational structures in complex business partnerships and agreements.

Differentiate between multiple forms of business organizations based on their asset management, profit distribution, and member liability.

Analyze the formation, operation, and legal aspects of various business organizations through comparative analysis.

Discuss the benefits and limitations of forming a cooperative and how profits are distributed among its members.

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Definitions:

Japanese Fuel-efficient Cars

Automobiles produced by Japanese manufacturers known for their high fuel efficiency and innovative engineering.

Consumer

A person or collective that buys products and services for private consumption.

Seller

An individual or entity that offers goods or services in exchange for financial compensation.

Tax

A binding financial duty or another sort of imposition inflicted upon a taxpayer by a governmental unit for financing government activities and numerous public allocations.