The Company Is in the Process of Preparing a Cash

question 52

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
- What is the budgeted accounts receivable balance on December 1

• A)£ 80,000.
• B)£140,000.
• C)£ 94,500.
• D)£131,300.

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Definitions:

Groundwater Mining

The process of extracting water from underground aquifers at a rate faster than the natural recharge, leading to depletion or diminishing of groundwater resources.

Atmospheric Carbon

Gaseous carbon compounds, such as carbon dioxide, present in the atmosphere, significantly affecting the Earth's climate.

Sedimentary Cycle

A biogeochemical cycle that involves the movement and processing of sediment materials across the Earth's surface and crust.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water, involving the release of oxygen as a byproduct.