[The Following Information Applies to the Questions Displayed Below

question 13

Multiple Choice

[The following information applies to the questions displayed below.]
On October 1 of the current year,Molloy Corporation prepared a cash budget for October,November,and December.All of Molloy's sales are made on account.The following information was used in preparing estimated cash collections:
Approximately 60% of all sales are collected in the month of the sale,30% is collected in the following month,and 10% is collected in the month thereafter.
-Budgeted collections from customers in November total:

• A)$32,000.
• B)$53,000.
• C)$59,000.
• D)$48,000.

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Definitions:

Total Collection Time

The period it takes for a business to convert its credit sales into cash, encompassing the entire process from sale to cash collection.

Cash Management

The process of collecting, managing, and investing a company's cash flow in a way that maintains or increases the company's liquidity.

Temporary Excess Cash

Surplus cash not required for immediate operational or investment needs, often invested in short-term securities.

Invest

The act of allocating resources, usually money, in order to generate an income or profit.