CHAPTER 4:

5) A firm has forecasted sales of $4,500 in April, $3,000 in May, and $5,000 in June. All sales are on credit. 30% is collected in the month of the sale, and the remainder in the following month. How much cash is collected in June?

A) $1,500

B) $5,250

C) $4,050

D) $3,600

6) If Excel Inc. has projected sales of $30,000 in January, $20,000 in February, and $20,000 in March, where 20% of sales are cash sales and the remaining credit sales are collected the month after, what are the cash receipts in March?

A) $20,000

B) $16,000

C) $21,400

D) $10,300

CHAPTER 6:

7) Samuelson has a beginning inventory balance on January 1 of 12,000 units and desires an ending balance of 20% of the next month's sales. If sales are expected to be 17,000 for January and 20,000 for February, what is the ending balance as of January 31?

A) 4,000 units

B) 5,500 units

C) 3,400 units

D) 8,400 units

8) Retail companies like Target and Macy's exhibit sales patterns that are most typically influenced by

A) cyclical economic indicators.

B) competitive prices.

C) seasonality.

D) sales promotions

CHAPTER 7:

9) Modos Company has deposited $3,500 in checks received from customers. It has written $1,400 in checks to its suppliers. The initial bank and book balance was $600. If $1,600 of its customers' checks have cleared, but only $600 of its own, calculate its float.

A) $1,200

B) $1,100

C) $300

D) $700

CHAPTER 8:

10) The cost of not taking the discount on trade credit of 2/10, net 30 is approximately ________.

A) 44.54%

B) 43.20%

C) 36.73%

D) None of these options are true