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Vitek1552 [10]
3 years ago
15

ABC Company expects the following sales and collection pattern for the last 4 months of the year. Month Cash Sales Credit Sales

Total Sales September $25,000 $65,000 $90,000 October $28,000 $72,000 $100,000 November $26,000 $68,000 $94,000 December $30,000 $71,000 $101,000 • 5% of credit sales are collected in the same month. • 65% of sales are collected in the following month. • 25% of sales are collected in the second following month. What are the projected cash collections for the month of December?
Business
1 answer:
Scrat [10]3 years ago
5 0

Answer:

<u>The projected cash collections for the month of December is $ 65,750. </u>

Explanation:

Projected cash flows for the month of December = 25% of october credit sales + 65% of November credit sales

5% of December credit sales

= (72000*25%) + (68000*65%) + (71000*5%)

= $ 65,750.

 Total percentage as per given question, is only 95% but not 100%.

Also, credit sales collections upto second following month of Actual date of sale. So, september month sale  is not considered.

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Business behavior is derived in large part from the basic cultural environment in which the business operates and, as such, is s
solong [7]

Answer:

TRUE

Explanation:

The influence of cultural on business behavior is broadly encompassing. Cultural impacts ranges from understanding employee behavior and employees management methodologies; i.e. how best to manage employees based on their values and priorities. It also impacts the functional areas of marketing and distribution: what people appreciate and the peculiarities of their environment. It also greatly impact and is a strong determinant factor of success when a company is taking a decision on how best to enter a new market.

When business ignore cultural factors they are guilty of ethnocentrism and could be orchestrating business failure.

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3 years ago
Firm X and Firm Y both sell the same products at the same price; both firms are the same size with identical sales levels; Firm
Vika [28.1K]

Answer:

The options are given below:

A. Firm X

B. Firm Y

C. Same variability of operating profits

D. It would depend on tax effect on taxable income

The correct option is B. Firm Y

Explanation:

This is because firm Y has a higher operating leverage than firm X.

<u>Operating Leverage</u> refers to a cost-accounting formula that measures the degree to which a firm can increase operating income by increasing revenue. Operating leverage actually boils down to the analysis of fixed costs and variable costs, and it is highest in companies that have a high fixed operating costs in comparison with variable operating costs. What this means is that this kind of company makes use of more fixed assets. On the other hand, operating leverage is lowest in companies that have a low fixed operating costs when compared with variable operating costs.

Companies with high operating leverage are capable of making more money from each additional sale if they do not have to incur more costs to produce more sales.

Therefore, from the scenario given above, we can conclude that firm Y has a higher operating leverage than firm X, because firm X has lower fixed costs than firm Y, and a higher variable cost than firm Y as well. Hence, firm Y has the potential to make more operating profits from its business activities.

4 0
3 years ago
On December 31, the company estimates future sales refunds to be $900. As of that date, the company has an unadjusted debit bala
Deffense [45]

Answer:

Dr Allowances for sales returns     $600

Cr Sales refund payable                             $600

Being increase sales refund estimate

Explanation:

The sales refund account is liability account that should naturally have a credit balance.

In the current period the balance in the sales refund payable account should be $900 in total,but there is a balancing credit amount already in the account,intuitively, the amount needed to raise the balance in the account to $900 is $600.

The necessary entries required for the sales refund payable is shown below:

Dr Allowances for sales returns     $600

Cr Sales refund payable                             $600

Being increase sales refund estimate

There is no adjusting entry to accounts receivable as that deals with receipt  of cash from sales transactions and not the actual sales transactions.

When the refund is eventually settled with cash, a debit is posted to sales refund payable and a credit to cash account

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I am pretty sure it's to decide if the applicant is creditworthy. ( Makes most sense. Did research too.)  :)
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