Question :
98.A managerial accounting report that presents predicted amounts of the : 1258642
98.A managerial accounting report that presents predicted amounts of the company’s revenues and expenses for the budget period is called a:
A. Budgeted income statement.
B. Budgeted balance sheet.
C. Master plan.
D. Rolling income statement.
E. Continuous profit statement.
99.Justin Company’s budget includes the following credit sales for the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible. How much cash can Justin Company expect to collect in November as a result of current and past credit sales?
A. $19,700.
B. $28,500.
C. $30,000.
D. $31,100.
E. $33,900.
15% of November sales (15% * $30,000)$4,500
60% of October sales (60% * $36,000)21,600
20% of September sales (20% * $25,000) 5,000
100.Funcycle Manufacturing’s budget includes the following credit sales for the current year: September, $145,000; October, $136,000; November, $120,000; December, $157,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 50% in the first month after sale, and 35% in the second month after sale. What are the cash collections of credit sales in the month of December?
A. $23,550.
B. $107,600.
C. $83,550.
D. $157,000.
E. $131,150.
15% of December sales (15% * $157,000)$23,550
50% of November sales (50% * $120,000)60,000
35% of October sales (35% * $136,000) 47,600
101.In preparing a budgeted balance sheet, the amount for Accounts Receivable data can be derived from:
A. The purchases budget and schedule of cash payments.
B. The sales budget and the schedule of cash receipts.
C. The capital expenditures budget and purchases budget.
D. The budgeted income statement and budgeted balance sheet.
E. The selling expenses budget and the schedule of cash receipts.
102.Long-term liability data for the budgeted balance sheet is derived from:
A. The cash budget and capital expenditures budget.
B. The cash budget and sales budget.
C. The cash budget and budgeted income statement.
D. The sales budget and production budget.
E. The asset budget and debt budget.
103.In preparing financial budgets:
A. The budgeted balance sheet is usually prepared last.
B. The cash budget is usually not prepared.
C. The budgeted income statement is usually not prepared.
D. The capital expenditures budget is usually prepared last.
E. The budgeted income statement is usually prepared last.
104.A company’s history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 20% in the month of the sale, 50% in the next month, 25% the following month, and 5% is uncollectible. Projected sales for December, January, and February are $60,000, $85,000 and $95,000, respectively. The February expected cash receipts from all current and prior credit sales is:
A. $57,000
B. $61,200
C. $66,400
D. $80,750
E. $90,250
105.A company’s history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 30% in the month of the sale, 50% in the next month, and 15% the following month. Projected sales for January, February, and March are $60,000, $85,000 and $95,000, respectively. The March expected cash receipts from all current and prior credit sales is:
A. $57,000
B. $63,080
C. $64,000
D. $80,750
E. $90,250
30% of March credit sales30% * (80% * $95,000) =$22,800
50% of February credit sales50% * (80% * $85,000) =34,000
15% of January credit sales15% * (80% * $60,000) = 7,200
106.Walter Enterprises expects its September sales to be 20% higher than its August sales of $150,000. Purchases were $100,000 in August and are expected to be $120,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month. The beginning cash balance on September 1 is $7,500. The ending cash balance on September 30 would be:
A. $31,500.
B. $67,500.
C. $54,000.
D. $61,500.
E. $136,500.
107.The Ballentine 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.
