The following forecasted sales pertain to Tigers, Inc.
$$\begin{array} { l r }
\text { Month } & \text { Sales } \
\text { September } & \$ 400,000 \
\text { October } & 500,000 \
\text { November } & 300,000 \
\text { December } & 200,000
\end{array}$$
$\begin{array}{llr}
\text {Accounts receivable as of August 31 } &\$70,000\
\text { Finished goods inventory as of August 31 } &8,000\text{units}\
\end{array}$

The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20 percent of next month’s sales.
-Refer to the figure.How many dollars are expected to be collected in October?

Question

The following forecasted sales pertain to Tigers, Inc.
$$\begin{array} { l r } 
\text { Month } & \text { Sales } \
\text { September } & \$ 400,000 \
\text { October } & 500,000 \
\text { November } & 300,000 \
\text { December } & 200,000
\end{array}$$ 
$\begin{array}{llr}
  \text {Accounts receivable as of August 31  } &\$70,000\
 \text { Finished goods inventory as of August 31 } &8,000\text{units}\
\end{array}$

The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 20 percent of next month’s sales.
-Refer to the figure.How many dollars are expected to be collected in October?

Quizplus · Accepted Answer

The total expected revenue for October is the sum of the expected revenue from both products, which is $220,000 + $240,000 = $460,000. Therefore, the correct answer is (C) $460,000.

The Following Forecasted Sales Pertain to Tigers, Inc The Company Has a Selling Price of $10 Per Unit