A Company's History Indicates That 20% of Its Sales Are

question 43

True/False

A company's history indicates that 20% of its sales are for cash and the rest are on credit.Collections on credit sales are 20% in the month of the sale,50% in the next month,and 30% the following month.Projected sales for January,February,and March are $75,000,$92,000 and $60,000,respectively.The March expected cash receipts from all current and prior credit sales are $80,500.

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Definitions:

Dependent Variable

The variable being tested and measured in a scientific experiment, which is affected by the independent variable.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effect on the dependent variable.

Negative Correlation

A relationship between two variables where one variable increases as the other decreases, and vice versa.

Scientific Observation

The process of gathering empirical data through the senses or instruments as part of the scientific method to understand phenomena.