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NEW QUESTION 26
A company is formulating its plans for the coming year, including the preparation of its cash budget. Historically. 30% of the company's sales are cash sales. The remaining 70% are credit sales with the following collection pattern:
Sales for the first 5 months of the coming year are forecast as follows:
For the month of April, the total cash receipts from sales and collections on account would be:
- A. US$3,781,600
- B. US$4,025,200
- C. US$4,408,000
- D. US$3,729,968
Answer: A
Explanation:
The cash receipts for April equal April's cash sales (US $4,000,000 * 30% = US $1.200, 000), 40% of April's credit sales, and 58% of March's credit sales. Consequently, total cash receipts equal US $3,781,600 [$1,200,000 + ($4,000,000 * 40% x 70%) + ($3,600,000 x 58% x 70%)].
NEW QUESTION 27
Which of the following purchasing scenarios would gain the greatest benefit from implementing electronic data interchange?
- A. A variable volume sensitive to material cost.
- B. A currently inefficient purchasing process.
- C. A time-sensitive just-in-time purchase environment.
- D. A large volume of custom purchases.
Answer: C
NEW QUESTION 28
Which of the follov5ring is used in determining the economic order quantity ECQ)?
- A. Queuing theory
- B. Regression analysis.
- C. Calculus.
- D. Markov process.
Answer: C
Explanation:
The primary business application of differential calculus is to identify the maxima or minima of curvilinear functions. In business and economics, these are the points of revenue or profit maximization maxima) or cost minimization minima). The Eli results from differentiating the total cost with regard to order quantity.
NEW QUESTION 29
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