Super Drive Is a Computer Hard Drive Manufacturer $£ 520,000$ For December And

question 56

Multiple Choice

Super Drive is a computer hard drive manufacturer. The company's balance sheet for the fiscal year ended on November 30 appears below:
Additional information regarding Super Drive's operations appear below:*Sales are budgeted at $£ 520,000$ for December and $£ 500,000$ for the upcoming year.
*Collections are expected to be $60 \%$ in the month of sale and $40 \%$ in the month following sale. There are no bad debts.
*80\% of the disk drive components are purchased in the month prior to the month of the sale, and $20 \%$ are purchased in the month of the sale. Purchased components comprise $40 \%$ of the cost of goods sold.
*Payment for components purchased is made in the month following the purchase.
*Assume that the cost of goods sold is $80 \%$ of sales.
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The budgeted cash collections for the upcoming December should be

• A)£208,000.
• B)£520,000.
• C)£402,000.
• D)£462,000.

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Definitions:

Source Credibility

Refers to the level of trustworthiness and expertise attributed to a source of information by a receiver.

Coping Mechanism

Strategies or behaviors employed by individuals to manage stress, conflicts, or emotional problems.

High Level of Fear

An intense emotional state caused by the perception of imminent danger or threat.

Terminal Values

Terminal values are the deeply held beliefs and principles that an individual or culture sees as ultimate goals and ends in life, such as happiness, success, and peace.