958/2961259430360760321/ A As it prepares its cash budget, Boulder Company expects its inventory levels to remain constant. How does this impact the cash budget? The cost of inventory purchases is expected to be less than total sales. O Inventory purchases are expected to be the same as cost of goods sold. O Inventory purchases are expected to be greater than cost of goods sold. The cost of inventory purchases is expected to be more than total sales.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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F
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om/course/activity.Iti/1938/2961259430360760321/
A
As it prepares its cash budget, Boulder Company expects its inventory levels to remain constant. How does this impact the cash budget?
The cost of inventory purchases is expected to be less than total sales.
O Inventory purchases are expected to be the same as cost of goods sold.
O Inventory purchases are expected to be greater than cost of goods sold.
The cost of inventory purchases is expected to be more than total sales.
10
Your cash budget reveals an expected shortfall of cash in July. What additional cash budget information will a bank ask to see before approving making you
a loan in July?
O Accounts payable data for the months January through March
O Evidence of an expected surplus of cash in the months after July
O Evidence of an expected additional shortfall of cash in the months after July
O Accounts receivable data for the months January through March
You are preparing a cash budget for the month of September. How would you use information about sales in the preceding July?
To estimate September cash collections for credit sales made in July
O To determine the amount of retained earnings that can be turned into cash in September
O To estimate July cash collections for credit sales made in September
To compute cost of goods sold as a percentage of sales
Loa Company x +
Q Search
Co
2"
10.21
Transcribed Image Text:9 F ear om/course/activity.Iti/1938/2961259430360760321/ A As it prepares its cash budget, Boulder Company expects its inventory levels to remain constant. How does this impact the cash budget? The cost of inventory purchases is expected to be less than total sales. O Inventory purchases are expected to be the same as cost of goods sold. O Inventory purchases are expected to be greater than cost of goods sold. The cost of inventory purchases is expected to be more than total sales. 10 Your cash budget reveals an expected shortfall of cash in July. What additional cash budget information will a bank ask to see before approving making you a loan in July? O Accounts payable data for the months January through March O Evidence of an expected surplus of cash in the months after July O Evidence of an expected additional shortfall of cash in the months after July O Accounts receivable data for the months January through March You are preparing a cash budget for the month of September. How would you use information about sales in the preceding July? To estimate September cash collections for credit sales made in July O To determine the amount of retained earnings that can be turned into cash in September O To estimate July cash collections for credit sales made in September To compute cost of goods sold as a percentage of sales Loa Company x + Q Search Co 2" 10.21
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Since there are multiple questions, we will answer only first question. 

Cash budget is one of the important budget being prepared in business, which shows all cash inflows and cash outflows of the business for the particular period. 

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