Month Budgeted Sales January $ 76,000 February 85,000 March 92,000 April 79,000 Budgeted Selling and Administrative Expenses Per Month are as follows: Vages, $15,000 dvertising, $12,000 Depreciation, $3,000 Dther, 4 percent of Sales Cost of Goods Sold is 60% of Sales. All inventory is purchased in the month it is sold. Inventory purchases are paid 2/3 in the month of purchase, the remaining 1/3 paid in the following month. hat amount of Accounts Payable would be reported on the Balance Sheet at the end of February? a. $17,000 b. $54,000 C. $34,000

Month Budgeted Sales January $ 76,000 February 85,000 March 92,000 April 79,000 Budgeted Selling and Administrative Expenses Per Month are as follows: Vages, $15,000 dvertising, $12,000 Depreciation, $3,000 Dther, 4 percent of Sales Cost of Goods Sold is 60% of Sales. All inventory is purchased in the month it is sold. Inventory purchases are paid 2/3 in the month of purchase, the remaining 1/3 paid in the following month. hat amount of Accounts Payable would be reported on the Balance Sheet at the end of February? a. $17,000 b. $54,000 C. $34,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cullumber Design provided the following budgeted information for April through July: April May June July Projected sales $133120 $157440 $147200 $168960 Projected merchandise purchases $104960 $117760 $99840 $84480 The cash balance on June 1 is $15360. The company pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses are budgeted to be $39680 per month of which depreciation is $3840 of this amount. Management pays operating expenses in the month incurred. The company makes loan payments of $5120 per month of which $768 is interest and the remainder is principal. How much are budgeted cash disbursements for June? O $110592. O $151552. O $131584. O $80896.
Center Company makes collections on sales according to the following schedule: 30% in the month of sale 60% in the month following sale 8% in the second month following sale The following sales are expected: Expected Sales January $ 108,000 February $ 144,000 March $ 127,000 Cash collections in March should be budgeted to be:
page Fraser Company has forecast purchases on account to be $210,000 in March, $270,000 in April, $320,000 in May, and $390,000 in June. Seventy percent of purchases are paid for in the month of purchase, the remaining thirty percent are paid in the following month. What are budgeted cash payments for April? O a. $252,000 O b. $285,000 O c. $126,000 O d. $159,000 irses.open.uwi.edu/mod/quiz/attempt.php?attempt=63242&cmid-99810&page-14 pe here to search S J £ 3 E $ 4 O BI R JU F JU % 5 C T 6 B & H U 8 Time left 0:28:46 W Next page 28°C Mostly
Folgerty Enterprises prepared the following sales budget: Month Budgeted Sales March $6,000 April $13,000 May $12,000 June $14,000 The expected gross profit rate is 30% and the inventory at the end of February was $10,000. Desired finished goods inventory levels at the end of the month are 20% of the next month's cost of goods sold. What is the desired beginning finished goods inventory on June 1 (in dollars)? Select one: a. $1,960 b. $840 c. $1,680 d. $9,800 e. $1,860
Seaworthy Company, a merchandising company, has prepared the following sales budget: Month Budgeted Sales March $200,000.00 April 202,000 May June Cost of goods sold is budgeted at 50% of sales, and the inventory at the end of February was $34,000.00. Desired inventory levels at the end of each month are 10% of the next month's cost of goods sold. What is the desired beginning inventory on June 1? 238,000 256,000 O A. $12,800.00 O B. $118,000.00 OC. $11,900.00 O D. $25,600.00
Flint, Inc. provided the following information: Projected merchandise purchases . March April $67,000 $75,000 Budgeted cash disbursements $ Flint pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. General operating expenses are budgeted to be $25,000 per month of which depreciation is $2,000 of this amount. Flint pays operating expenses in the month incurred. Calculate Flint's budgeted cash disbursements for May. May $81,000
Assume a company's sales budget for July estimates 17,000 units sold. The variable selling and administrative expense used for budgeting purposes is $4.00 per unit sold. The total budgeted cash disbursements for selling and administrative expenses in July is $139,000. The total fixed selling and administrative expenses included in the selling and administrative expense budget for July is $100,000. What is the amount of depreciation included in the selling and administrative expense budget for July? Multiple Choice O OOO $14,000 $32,000 $29,000 $47,000
Assume the following budgeted information for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $248,000, $218,000, and $209,000, respectively. • Cash collections related to credit sales are expected to be 70% in the month of sale, 30% in the month following the sale. • The cost of goods sold is 70% of sales. • Each month's ending inventory equals 20% of next month's cost of goods sold. • 30% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. • Monthly selling and administrative expenses that are paid in cash in the month incurred total $25,000. • Monthly depreciation expense is $9.000. . The budgeted net operating income for December would be: Multiple Choice $40,400 $25,734 $16,734 $31,400
Tuscarora, Inc., a merchandising company, has the following budgeted figures: Sales Cost of goods sold Required ending inventory Jan $56,700 60% of sales Feb $64,000 Mar April $88,000 $92,000 $10,000 + 30% of next month's sales $27,500 Inventory on hand on Jan 1 Calculate the budgeted purchases for the month of January. OA. $4,820 OB. $63,220 OC. $35,720 OD. $29,200
Farm Supply Company's budgeted monthly sales are as follows: April $780,000, May $560,000, and June $900,000. Sales are 60% cash and 40% on account. Farm Supply collects all its accounts receivable in the month following the sale. Cost of goods sold is budgeted at 75% of sales and ending inventory is budgeted at 20% of the next month's cost of goods sold. All inventory purchases are paid 28% in the month of purchase and 72% in the following month. What are Farm Supply's budgeted cash collections for the month of May? O $336,000 O $414,000 O $648,000 O $747,000 O None of the above
Meredith Company has budgeted sales for the upcoming months as follows: $ 452,000 $ 467,000 $ 498,000 $ 516,000 $ 503,000 $ April Мay June July August September $ 478,000 40% of the sales are credit sales, the remainder are made in cash. Credit sales are collected 50% in the month of sale, 35% in the month following the sale, and 8% in the second month following the sale. a. Compute Meredith Company's cash receipts for June. (Do not round intermediate calculations.) Cash Receipts b. Compute Meredith Company's cash receipts for July. (Do not round intermediate calculations.) Cash Receipts c. Compute Meredith Company's cash receipts for August. (Do not round intermediate calculations.) Cash Receipts
Ivanhoe Design provided the following budgeted information for April through July: April May June July Projected sales $112320 $132840 $124200 $142560 Projected merchandise purchases $88560 $99360 $84240 $71280 The cash balance on June 1 is $12960. The company pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses are budgeted to be $33480 per month of which depreciation is $3240 of this amount. Management pays operating expenses in the month incurred. The company makes loan payments of $4320 per month of which $648 is interest and the remainder is principal. How much are budgeted cash disbursements for June? $111024. $127872. $93312. $68256.