1.

The following forecasted sales pertain to Spyware Corporation:

Month	Sales
September	$40,000
October	50,000
November	30,000
December	20,000

Collection pattern: 65 percent in month of sale 35 percent in month following sale

Accounts receivable as of August 31	$7,000
Finished goods inventory as of August 31	1,500 units

Spyware Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25 percent of the next month's sales. How many dollars are expected to be collected in December?

a.$37,000

b.$23,500

c.$26,500

d.$30,500

2.

Discus Productions needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 10 percent of total sales each month. Historically, sales on account have been collected as follows: 60 percent in the month of sale, 30 percent in the month after the sale, and the remaining 10 percent two months after the sale. Sales for the quarter are projected as follows: April, $120,000; May, $100,000; and June, $80,000. Accounts receivable on March 31 were $60,000. The expected cash collections of Discus Productions for June are

a.$98,000.

b.$48,000.

c.$89,000.

d.$68,000.