1. Smiths tours have provided the following sales forecast for the next four months:

• April 250000
• May 150000
• June 225000
• July 150000

Cash sales average 10 percent of total sales and credit sales are collected 50 percent in the month of sale and 50 percent in the month following sale. What are the estimated cash collections in May?

a. 400000

b. 225000

c. 150000

d. 195000

e. 320000

2. The Pickwick Hotel, which hosts a large number of conferences, receives 5% of revenue as a deposit in the month prior to a conference, 40% of revenue is received in the same month that a conference is held and 55% of revenue is collected in the month following a conference.

Conference revenue was $60,000, $70,000 and $80,000 in January, February and March, respectively.

What is the amount of conference receipts collected in February?

a. 65000

b. 70000

c. 28000

d. 35000

e. 130000

3. The Honeymoon Hotel has a foyer shop that sells souvenir T-shirts. The shop manager likes to hold 40% of the following months projected T-shirt sales in stock. Projected T-shirt sales in the next two months are:

• August: 500
• September: 400

The shop has projected it will be holding 200 T-shirts in stock on 1st August. If the T-shirts cost $5 each, what is the cost of T-shirt purchases to be made in August?

a. 3500

b. 2300

c. 4500

d. 1700

e. 2000