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

question 136

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 June.

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

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Definitions:

API Gravity

A measure used to quantify the density of petroleum liquids relative to water, as defined by the American Petroleum Institute.

Price Per Barrel

The cost of a barrel of goods, commonly used in reference to crude oil prices in the commodities market.

Outlier

An observation in a dataset that is distant from other observations such that it appears to deviate markedly from other members of the sample.

Autocorrelation

The correlation of a signal with a delayed copy of itself as a function of delay.