Apollo Corporation produces and sells a single product, sewing machines, for $100 per unit. Budgeted sales for the next three months are given below:

Unit Sales

July 80,000

August 85,000

September 92,000

All sales are on credit and are collected in the following pattern: 30% in the month of salesand the remaining 70% in the month following sale.

1. What is the amount of sales revenue reported on the company's budgeted income statement for August?

multiple choice 1

• $8,000,000
• $8,150,000
• $8,500,000
• $7,720,000

2. Past experience has shown that end-of-month inventory levels must equal 20% of the following month's unit sales. How many units are required to be produced in August?

multiple choice 2

• 81,000 units
• 86,400 units
• 84,800 units
• 85,600 units

3. In August,how much cash the company can collect from sales?

multiple choice 3

• $8,150,000
• $7,720,000
• $8,500,000
• $8,680,000

4. In the company's balance sheet dated August31, what is the balance of accounts receivable?

multiple choice 4

• $2,445,000
• $5,320,000
• $5,950,000
• $5,600,000