The Company Is in the Process of Preparing a Cash

question 19

Multiple Choice

$\begin{array}{lrr}&\text { Cash Sales } & \text { Credit Sales }\\ \text { July } &£ 50,000 &£ 150,000\\ \text { August. } &55,000 & 170,000\\ \text { September } &45,000 &130,000\\ \text { October } &50,000 &145,000\\ \text { November } &60,000 & 200,000\\ \text { December } &80,000 &350,000\\\end{array}$
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 July 1 was £75,000. Of this amount, £60,000 represented uncollected June sales and £15,000 represented uncollected May sales. Given these data, the total cash collected during July would be

• A)£150,000.
• B)£235,000.
• C)£215,000.
• D)£200,000.

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Definitions:

Triglyceride

A molecule made of three fatty acids esterified to glycerol, serving as the primary form of fat storage in animals and plants.

Complex Lipid

Any of a group of lipids that combine with other types of molecules, such as carbohydrates or proteins, forming structures essential for living organisms.

Simple Lipids

Lipids that consist of fatty acids esterified with glycerol, including fats and oils, which serve as energy storage molecules in living organisms.

Esterification

A chemical reaction that forms an ester through the reaction of a carboxylic acid and an alcohol.