Question : 148. Next year’s sales forecast shows that 20,000 units of Product : 1226977

 

 

148. Next year’s sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12, respectively.  The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units.  The beginning inventory of Product B is 2,500 units.  The desired ending inventory of B is 3,000 units.

Budgeted purchases of Product B for the year would be: 
A. 24,500 units
B. 22,500 units
C. 26,500 units
D. 23,200 units

 

149. Heedy Company is trying to decide how many units of merchandise to order each month.  The company policy is to have 20% of the next month’s sales in inventory at the end of each month.  Projected sales for August, September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively.  How many units must be purchased in September? 
A. 24,000
B. 18,000
C. 28,000
D. 22,000

 

150. If budgeted beginning inventory is $8,300, budgeted ending inventory is $9,400, and budgeted cost of goods sold is $10,260, budgeted purchases should be: 
A. $1,100
B. $9,300
C. $11,360
D. $11,250

 

151. When preparing the cash budget, all the following should be considered except: 
A. Cash receipts from customers.
B. Depreciation expense.
C. Cash payments to suppliers.
D. Cash payments for equipment.

 

152. Which of the following would not be used in preparing a cash budget for October? 
A. Beginning cash balance on October 1.
B. Budgeted salaries expense for October.
C. Estimated depreciation expense for October.
D. Budgeted sales and collections for October.

 

153. Southern Company is preparing a cash budget for April.  The company has $12,000 cash at the beginning of April and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during April.  Southern Company has an agreement with its bank to maintain a cash balance of at least $10,000.  To maintain the $10,000 required balance, during April the company must: 
A. borrow $4,500.
B. borrow $2,500.
C. borrow $7,500.
D. borrow $5,000.

 

154. Tara 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 Tara Company expect to collect in November as a result of current and past credit sales? 
A. $19,700
B. $28,400
C. $30,000
D. $31,100

 

155. 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. $61,200
B. $57,000
C. $66,400
D. $90,250

 

156. Gilbert’s 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 balance on September 30 would be: 
A. $61,500
B. $75,000
C. $72,300
D. $71,500

 

 

 

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