Super Drive Is a Computer Hard Drive Manufacturer

question 106

Multiple Choice

Super Drive is a computer hard drive manufacturer. The company's balance sheet for the fiscal year ended on November 30 appears below:

Additional information regarding Super Drive's operations appear below:
• Sales are budgeted at $520,000 for December and $500,000 for January.
• Collections are expected to be 60% in the month of sale and 40% in the month following sale. There are no bad debts.
• 80% of the disk drive components are purchased in the month prior to the month of the sale, and 20% are purchased in the month of the sale. Purchased components comprise 40% of the cost of goods sold.
• Payment for components purchased is made in the month following the purchase.
• Assume that the cost of goods sold is 80% of sales.


-The budgeted cash collections for the upcoming December should be:

• A) $208,000
• B) $520,000
• C) $402,000
• D) $462,000

---

Definitions:

\(a _ { 5 }\)

Typically denotes the fifth term in a sequence or series, depending on the context of its use.

\(\left( - \frac { 1 } { 5 } \right) ^ { n }\)

This represents a mathematical expression indicating the nth power of \(-\frac{1}{5}\).

Arithmetic

A branch of mathematics dealing with numbers and basic operations such as addition, subtraction, multiplication, and division.

Common Difference

The constant difference between successive terms of an arithmetic sequence.