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Question
The Palos Company expects sales for June, July, and August of $48,000, $54,000, and $44,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 50% of its credit sales in the month following sale, 45% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales?
A. $29,160
B. $46,760
C. $61,160
D. $66,200
E. $78,800
Answer
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Related questions
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Periods
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Q:
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Q:
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B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
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E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.