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

question 150

Multiple Choice

A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 30% in the month of the sale, 50% in the next month, and 15% the following month. Projected sales for January, February, and March are $60,000, $85,000 and $95,000, respectively. The March expected cash receipts from all current and prior credit sales is:

• A) $57,000
• B) $63,080
• C) $64,000
• D) $80,750
• E) $90,250

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Definitions:

Red Petals

Colored sections of a flower's corolla, often used to attract pollinators.

Statistical Significance

A measure of the likelihood that an observed difference or relationship exists due to chance.

Utricle

A part of the inner ear involved in sensing linear accelerations and head-tilt positions relative to gravity.

Saccule

A small, bed-like structure in the vestibular system of the inner ear, contributing to the sense of balance.