The Company Is in the Process of Preparing a Cash

question 63

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
- 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:

Gregory Mantsios

A scholar known for his work on social stratification, media, and education, particularly on how socioeconomic background affects educational outcomes.

White Prejudice

Preconceived negative judgments or beliefs held by individuals identifying as white towards people of other races.

Systemic Nature

Pertains to the inherent, widespread, and fundamental characteristics of a system, influencing and governing its operations and effects.

Gregory Mantsios

An academic known for his work on social stratification, class, race, and the media, particularly for his writings on how class affects education and media portrayal.