Question :
81.Sultan Sundries must maintain a minimum cash balance of $34,000. : 1302853
81.Sultan Sundries must maintain a minimum cash balance of $34,000. At the beginning of February the company’s cash balance was $60,000. The budget for February is as follows:
Total cash receipts $250,000
Total cash disbursements $245,000
Net income $50,000
Purchase machinery by signing a note $35,000
During February, how much will Sultan need to borrow?
A.$50,000
B.$0
C.$25,000
D.$4,000
82.DynaCare Products’ sales are all on account. History indicates that sales will be collected as follows:
Month of sale 25%
Month following the sale 65%
Second month following the sale 8%
Never collected 2%
Budgeted sales data follows:
March $300,000
April $250,000
May $260,000
June $230,000
July $200,000
How much are total budgeted cash collections during May?
A.$230,500
B.$258,300
C.$65,000
D.$251,500
83.Paradise Gifts has budgeted sales for the quarter as follows:
January 11,000 units
February 13,000 units
March 17,000 units
The ending inventory of finished goods each month should equal 25% of the next month’s budgeted sales in units. How much is scheduled production for February?
A.17,250 units
B.14,000 units
C.9,750 units
D.12,000 units
84.Hanover Inc. sells buckets for $15 each. Budgeted unit sales for 4 months of 2014 are:
March26,000 buckets
April 28,000 buckets
May 22,000 buckets
June25,000 buckets
Hanover desires to have buckets on hand at the end of each month equal to 16 percent of the following month’s budgeted unit sales. Each bucket requires 3.9 pounds of plastic. At the end of each month, Hanover desires to have 12 percent of production material needs for the next month on hand. The plastic costs $0.40 per pound. How many buckets should Hanover produce during May?
A.27,040 buckets
B.31,520 buckets
C.27,280 buckets
D.None of the answer choices are correct.
85.Samson Company has budgeted production for the next two months as follows:
July 16,000 units
August 22,000 units
Each unit requires 5 pounds of material. Raw materials at the end of each month should equal 10% of the next month’s production requirements. How many pounds will be budgeted for purchases of raw materials for July?
A.83,000 pounds
B.66,200 pounds
C.80,600 pounds
D.79,400 pounds
86.Green Company’s sales are 20% cash and 80% credit. Of the credit sales, 60% are collected in the month of sale and 30% in the month following the sale. The balance is collected during the following month. Budgeted sales data is as follows:
June $300,000
July $250,000
August $280,000
September $310,000
How much is total Accounts Receivable at the end of August?
A.$224,400
B.$89,600
C.$137,000
D.$109,600
87.Kitchen Stuff produces spatulas made out of acrylic. The company has estimated sales for June at 12,000, July at 12,800, August at 15,000, and September at 16,000 spatulas. The company plans to have 15% of the next month’s anticipated unit spatula sales and 22% of the next month’s acrylic needed for production on hand at the end of each month. Each spatula uses 7 ounces of acrylic, which is purchased at a cost of $0.22 per ounce. How much is budgeted production for July?
A.12,470 units
B.13,130 units
C.15,050 units
D.None of the answer choices are correct.
88.Teva Sandals’ sales for the next three months are as follows:
February $130,000
March $170,000
April $200,000
Collection history for the company indicates that 60% of sales are collected in the month of the sale, 36% is collected in the following month, and 4% of sales are uncollectible.
How much are budgeted cash receipts for April?
A.$181,200
B.$186,400
C.$120,000
D.$222,000
89.When budgets are used for evaluation, what is the difference between budgeted and actual amounts called?
A.Exceptions
B.Budget variances
C.Performance results
D.Flexible budgets
90.The main difference between a static budget and a flexible budget is that the static budget is
A.constructed using a top-down approach, while the flexible budget uses a bottom-up approach.
B.based on units produced, while a flexible budget is based on units sold.
C.for a single level of activity, while a flexible budget can be adjusted for different activity levels.
D.used only for selling and administrative costs, while the flexible budget is used for manufacturing costs.
