1. Pardee Company makes 30% of its sales for cash and 70% on account. 60% of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for the current year:

Month 1 2 3 4

Total sales $60,000 $70,000 $50,000 $30,000

Total cash receipts in Month 4 will be:

a) $38,000

b) $47,900

c) $27,230

d) $36,230

2. Long-range planning as a management function is more important:

a) At top management levels.

b) At lower management levels.

c) At middle management levels.

d) For staff functions than line functions.

e) For line functions than staff functions.