1. A company has expected sales for January through April of $9,800, $9,500, $13,800, and $9,500, respectively. Assume each month has 30 days and the accounts receivable period is 38 days. How much does the company expect to collect in the month of May?
A. $10,646.67
B. $15,880.00
C. $9,720.00
D. $12,213.33
E. $15,406.00
2. Which of the following statements is most correct?
A. The rate of depreciation will often affect operating cash flows, even though depreciation is not a cash expense.
B. Corporations should fully account for sunk costs when making investment decisions.
C. Corporations should fully account for opportunity costs when making investment decisions.
D. All of the answers above are correct.
E. Answers a and c are correct.