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XL’s sales in the last quarter were the highest when considering sales

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Senior Manager
Joined: 23 Nov 2016
Posts: 312
GMAT 1: 690 Q50 V33
XL’s sales in the last quarter were the highest when considering sales  [#permalink]

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05 Oct 2019, 22:27
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25% (medium)

Question Stats:

71% (01:31) correct 29% (01:41) wrong based on 164 sessions

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XL’s sales in the last quarter were the highest when considering sales in the past six quarters. Nonetheless, at the beginning of this quarter, the financial situation was so drastic that the company had to delay paying employees’ salaries by a week.

Which one of the following, if true, helps to explain why the company’s financial situation was weak despite good revenue in the last quarter?

A) The revenue had not shown any sign of increase in the last year.
B) Because of high revenue, more tax was paid in the last quarter than in any other of the past six quarters.
C) The payment structure demanded by XL is such that the revenues are realized almost three months after the completion of sales.
D) The employees were informed that there will be a delay in salary disbursement owing to cash flow issues.
E) The salary of each employee was increased to distribute profits earned during the last quarter.
Intern
Joined: 15 Oct 2018
Posts: 4
Re: XL’s sales in the last quarter were the highest when considering sales  [#permalink]

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14 Nov 2019, 21:49
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LoneSurvivor wrote:
XL’s sales in the last quarter were the highest when considering sales in the past six quarters. Nonetheless, at the beginning of this quarter, the financial situation was so drastic that the company had to delay paying employees’ salaries by a week.

Which one of the following, if true, helps to explain why the company’s financial situation was weak despite good revenue in the last quarter?

A) The revenue had not shown any sign of increase in the last year.
B) Because of high revenue, more tax was paid in the last quarter than in any other of the past six quarters.
C) The payment structure demanded by XL is such that the revenues are realized almost three months after the completion of sales.
D) The employees were informed that there will be a delay in salary disbursement owing to cash flow issues.
E) The salary of each employee was increased to distribute profits earned during the last quarter.

C clearly explains despite high revenue,some problem was there in salary disbursment
Re: XL’s sales in the last quarter were the highest when considering sales   [#permalink] 14 Nov 2019, 21:49
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