Browning Inc

question 22

Multiple Choice

Browning Inc. has projected the following sales information for the fourth quarter of 2013: Credit sales are collected over a two-month period, with 60 percent collected in the month of sale and 40 percent collected in the month following sale.
Total cash collections for December are:

• A) $86,000
• B) $54,000
• C) $83,600
• D) $68,000

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Definitions:

Par Value

The stated value of a stock or bond as designated by the issuer.

Privately Held Corporation

A corporation owned by private investors, its shares are not traded publicly on stock exchanges.

Corporation

A legal entity that is separate from its owners, providing limited liability protection to its shareholders and having the ability to raise capital by selling shares.

Held

Usually refers to assets or investments retained over a period, not sold or traded.