Table 1 Dunder Company's Projected Sales for the First Six Months of Months

question 66

Multiple Choice

Table 1
Dunder Company's projected sales for the first six months of 2017 are given below:
25% of sales is collected in cash at the time of the sale, 50% is collected in the month following the sale and the remaining 25% is collected in the second month following the sale.Cost of goods sold is 75% of sales.Purchases are made in the month prior to the sale, and payments for purchases are made in the month of the sale.Total other cash expenses are $60,000/month.The company's cash balance as of February 28, 2017, will be $40,000.Excess cash will be used to retire short-term borrowing (if any) .Dunder has no short-term borrowing as of February 28, 2017.Assume that the interest rate on short-term borrowing is 1% per month.The company must have a minimum cash balance of $25,000 at the beginning of each month.Round all answers to the nearest $100.
-Based on the information in Table 1, what are Dunder Company's total cash receipts (collections) for April 2017?

• A)$400,000
• B)$300,000
• C)$100,000
• D)($60,000)

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Definitions:

Interconnected

The state or condition of being connected with each other, especially referring to systems, objects, or concepts that are linked in a complex way.

Michel Foucault

A French philosopher and social theorist known for his influential work on the nature of power, knowledge, and social institutions.

Autonomous

Having the ability or right to govern oneself or make decisions independently, without external control.

Michel Foucault

A French philosopher, historian of ideas, social theorist, and literary critic known for his influence on postmodernist and critical theory, especially concerning power, knowledge, and discourses.