Solved

Match the Following

Question 103

Matching

Match the following:

Premises:
Hanson Manufacturing has the following revenues and collection pattern:
August September October November
Revenue $98,000 $102,800 $112,200 $111,900


Months After sale 1 2 3 4
Collection % 40% 30% 20% 10%

If the company offers a 2% prompt payment discount on all collections made in the first month, what are the cash collections for November?
Business planning spectrum
Monterey Inc. has the following revenues and collection pattern:
March April May June
Revenue $12,000 $12,800 $12,200 $11,900


Months After sale 1 2 3
Collection % 50% 30% 20%

What are the cash collections for May?
Responses:
$6,100
$108,884
Planning that tends to overstate achievable performance.
$12,280
$107,884
$12,340
A theoretical formulation of a firm's ability to grow with constant financial ratios.
$107,840
Reflects more qualitatively than quantitatively the concepts and ideas behind the firm's mission and goals.
A graphic representation of how plans vary with respect to time and detail.
$12,170
$108,780

Correct Answer:

$6,100
$108,884
Planning that tends to overstate achievable performance.
$12,280
$107,884
$12,340
A theoretical formulation of a firm's ability to grow with constant financial ratios.
$107,840
Reflects more qualitatively than quantitatively the concepts and ideas behind the firm's mission and goals.
A graphic representation of how plans vary with respect to time and detail.
$12,170
$108,780
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