Del Carpio, Inc

question 19

Essay

Del Carpio, Inc., sells two products, Widgets and Gadgets. The sales forecast in units for the first quarter of the coming year is:
Cash sales are 30% of each product's monthly sales. The remaining sales are credit sales which are collected as follows: 70% in the month of sale, 20% the next month, and 10% in the following month. Unit sale prices are $30 and $20 for Widgets and Gadgets, respectively.
Determine the company's cash receipts for March from its current and past sales.

Understand the legal and useful life of intangible assets and their impact on amortization.

Comprehend the cost allocation and reporting of intangible assets in financial statements.

Grasp the implications of research and development costs on financial reporting.

Understand the concept of return on assets and how it is affected by changes in asset values.

---

Definitions:

Cognitive Map

A mental representation of the layout of one’s environment. For example, after exploring a maze, rats act as if they have learned a cognitive map of it.

Behavioral Technology

The application of psychological principles and techniques to influence human behavior in practical, real-world settings.

Skinner

A psychologist known for his theory of operant conditioning, emphasizing the role of reinforcement in behavior modification.

Shaping

A method of operant conditioning in which successive approximations of a desired behavior are reinforced until the exact behavior is achieved.