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Budgeting (Cash) Rosetta Babell, Inc. provides online lessons in speaking a foreign language. The firm currently sells its monthly membership for $13.40/ unit. While they

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Budgeting (Cash) Rosetta Babell, Inc. provides online lessons in speaking a foreign language. The firm currently sells its monthly membership for $13.40/ unit. While they sell 25% cash memberships, the remaining 75% of sales are on credit. The credit sales are collected as follows: 30% in the month of the sale, 54% in the month following the sale, and 14% in the second month following the sale. 2% remains uncollectible over this period. During the period the firm also uses cash to pay for production expenses. Specifically, the firm spends $8.50/ unit and pays in cash for all units sold during the month. Sales for the next several months are given below: 28. How much cash will be collected in APRIL from APRIL sales? A. $76,550.85 B. $161,607.35 C. $340,226.00 D. $85,056.50 29. How much cash will be collected in APRIL from MARCH sales? A. $71,205.26 B. $37,976.14 C. $35,723.73 D. $128,169.46 30. How much cash will be collected in APRIL from FEBRUARY sales? A. $118,357.44 B. $30,685.26 C. $4,383.61 D. $292,240.60 31. What part of February sales remain UNCOLLECTED at the end of APRIL (including the part that will never be collected)? A. $4,383.61 B. $0 C. $29,224.60 D. $30,685.26 32. What part of March sales remain UNCOLLECTED at the end of APRIL (including the part that will never be collected)? A. $0 B. $35,723.73 C. $128,169.46 D. $37,976.14 33. What part of April sales remain UNCOLLECTED at the end of APRIL (including the part that will never be collected)? A. $35,723.73 B. $340,226.00 C. $178,618.65 D. $137,791.53 34. If the firm started the month of APRIL with $22,000 in cash, what is the cash balance at the end of the month? A. $134,578.92 B. $161,607.35 C. $126,647.07 D. $128,169.46

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