Chrome File Edit View History B People Window Help @ //M Tops Onnne.x(g women\'s

Question

Chrome File Edit View History B People Window Help @ //M Tops Onnne.x(g women's Fas ×M Access Conn Principles o. × -) ezto.mheducation.com/hm.tpx?-+0.3625343410633338-1510518191 400 value: 33.33 points Avril Company makes collections on sales according to the following schedule: 40% in the month of sale 55% in the month following sale 5% In the second month following sale The following sales have been are expected: January February March Expected Sales $110,000 $120,000 $110,000 Budgeted cash collections in March should be budgeted to be: $110,000 O $110,000 O $10.550 O $115.500 Check my work 16002

Explanation / Answer

PLs refer below table for sale and collection schedule.

Sale

Jan

Feb

Mar

Apr

Jan

110000

44000

60500

5500

Feb

120000

48000

66000

6000

Mar

110000

44000

60500

5500

Collection

44000

108500

115500

66500

5500

So correct answer is D.

Budgeted sale for next year is 505000, of which 85000, is already in the inventory as finished goods, so company need to produce (505000 – 85000 = 420000 units )

However the company need to maintain 55000 units as ending inventory, so these units will be also produced during the year so total number that are needed to produce

= 420000 + 55000

= 475000

Correct answer is C

Sale

Jan

Feb

Mar

Apr

May

Jan

110000

44000

60500

5500

Feb

120000

48000

66000

6000

Mar

110000

44000

60500

5500

Collection

44000

108500

115500

66500

5500

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