Kent Company Anticipates Total Sales for April, May, and June

question 140

Multiple Choice

Kent Company anticipates total sales for April, May, and June of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales. Of the credit sales, 30% are collected in the same month as the sale, 65% are collected during the first month after the sale, and the remaining 5% are not collected. Compute the amount of cash received from credit sales for May.

• A) $561,500.
• B) $652,500.
• C) $817,500.
• D) $592,500.
• E) $890,000.

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Definitions:

Disengagement

The process of withdrawing or detaching oneself from activities, responsibilities, or engagements, often used in the context of work or personal relationships.

Work Pacing

The rate at which work tasks are conducted, which can be influenced by organizational policies, individual preferences, and technical constraints.

Production Department

The division of a business that is responsible for actually making the goods or providing the services offered by the company.

Stress-prone Employees

Workers who are more likely to experience stress due to personal characteristics or job-related factors.