Question 1

Use the following information to answer the next 5 questions

Lash Corporation has the following sales budget for the last half of 2000:

(Assume all credit sales)

July $100,000 October $90,000

August 80,000 November 100,000

September 110,000 December 94,000

Historically, the cash collection of sales has been as follows:

65 percent of sales collected in month of sale,

25 percent of sales collected in month following sale, and

10 percent of sales collected in second month following sale.

What are the expected cash collections in September?

a.

$ 86,000.

b.

$ 97,100.

c.

$ 98,500.

d.

$101,500

QUESTION 2

1. Use the following information to answer the next 5 questions

   Lash Corporation has the following sales budget for the last half of 2000:

   (Assume all credit sales)

   July $100,000 October $90,000

   August 80,000 November 100,000

   September 110,000 December 94,000

   Historically, the cash collection of sales has been as follows:

   65 percent of sales collected in month of sale,

   25 percent of sales collected in month following sale, and

   10 percent of sales collected in second month following sale.

   What is accounts receivable at September 30?

a.

$ 8,000

b.

$ 46,500

c.

$ 71,500

d.

$110,000

QUESTION 3

1. Lash Corporation has the following sales budget for the last half of 2000:

   (Assume all credit sales)

   July $100,000 October $90,000

   August 80,000 November 100,000

   September 110,000 December 94,000 Historically, the cash collection of sales has been as follows:

   65 percent of sales collected in month of sale,

   25 percent of sales collected in month following sale, and

   10 percent of sales collected in second month following sale.

   What are the expected cash collections in November?

a.	$ 86,000.
	b.	$ 97,100.
	c.	$ 98,500.
	d.	$101,500

QUESTION 4

1. Lash Corporation has the following sales budget for the last half of 2000:

   (Assume all credit sales)

   July $100,000 October $90,000

   August 80,000 November 100,000

   September 110,000 December 94,000 Historically, the cash collection of sales has been as follows:

   65 percent of sales collected in month of sale,

   25 percent of sales collected in month following sale, and

   10 percent of sales collected in second month following sale.

   What are the expected cash collections in December?

   a.

   $ 86,000.

   b.

   $ 95,100.

   c.

   $ 98,500.

   d.

   $101,500

QUESTION 5

1. Lash Corporation has the following sales budget for the last half of 2000:

   (Assume all credit sales)

   July $100,000 October $90,000

   August 80,000 November 100,000

   September 110,000 December 94,000

   Historically, the cash collection of sales has been as follows:

   65 percent of sales collected in month of sale,

   25 percent of sales collected in month following sale, and

   10 percent of sales collected in second month following sale.

   What is accounts Receivable at December 31?

a.

$ 10,000

b.

$ 15,000

c.

$ 32,900

d.

$ 42,900