Question : 121. Finch Company began its operations March 31 of the current : 1246876

 

 

121. Finch Company began its operations on March 31 of the current year.  Finch Co. has the following projected costs:

 

April

May

June

Manufacturing costs(1)

$156,800

$195,200

$217,600

Insurance expense (2)

$1,000

$1,000

$1,000

Depreciation expense

$2,000

$2,000

$2,000

Property Tax expense(3)

$500

$500

$500

 

 

 

 

(1) 3/4 of the manufacturing costs are paid for in the month they are incurred.  1/4 is paid in the following month.(2) Insurance expense is $1,000 a month however the insurance is paid four times year in the first month of the quarter, i.e. January, April, July and October.(3) Property tax is paid once a year in November The cash payments for Finch Company in the month of April are: A. $122,600B. $120,600C. $123,100D. $121,100

 

122. Finch Company began its operations on March 31 of the current year.  Finch Co. has the following projected costs:

 

April

May

June

Manufacturing costs(1)

$156,800

$195,200

$217,600

Insurance expense (2)

$1,000

$1,000

$1,000

Depreciation expense

$2,000

$2,000

$2,000

Property Tax expense(3)

$500

$500

$500

 

 

 

 

(1) 3/4 of the manufacturing costs are paid for in the month they are incurred.  1/4 is paid in the following month.(2) Insurance expense is $1,000 a month however the insurance is paid four times year in the first month of the quarter, i.e. January, April, July and October.(3) Property tax is paid once a year in November The cash payments for Finch Company in the month of May are: A. $185,600B. $149,900C. $187,600D. $189,100

 

123. Finch Company began its operations on March 31 of the current year.  Finch Co. has the following projected costs:

 

April

May

June

Manufacturing costs(1)

$156,800

$195,200

$217,600

Insurance expense (2)

$1,000

$1,000

$1,000

Depreciation expense

$2,000

$2,000

$2,000

Property Tax expense(3)

$500

$500

$500

 

 

 

 

(1) 3/4 of the manufacturing costs are paid for in the month they are incurred.  1/4 is paid in the following month.(2) Insurance expense is $1,000 a month however the insurance is paid four times year in the first month of the quarter, i.e. January, April, July and October.(3) Property tax is paid once a year in November The cash payments for Finch Company in the month of June are: A. $215,500B. $188,800C. $214,000D. $212,000

 

124. Planning for capital expenditures is necessary for all of the following reasons except: A. machinery and other fixed assets wear outB. expansion may be necessary to meet increased demandC. amounts spent for office equipment may be immaterialD. fixed assets may fall below minimum standards of efficiency

 

125. As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March of 2009 were as follows: $120,000, $140,000 and $150,000. 20% of each months sales are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of January? A. $$74,000B. $110,000C. $71,600D. $131,600

 

126. As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March were as follows: $120,000, $140,000 and $150,000. 20% of each months sales are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of February? A. $129,600B. $62,400C. $133,600D. $91,200

 

127. As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March were as follows: $120,000, $140,000 and $150,000. 20% of each months sales are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of March? A. $74,800B. $146,800C. $102,000D. $116,800

 

128. As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March of 2009 were as follows: $120,000, $140,000 and $150,000. 20% of each months sales are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the accounts receivable balance as of March 31? A. $72,000B. $48,000C. $58,720D. $$60,000

 

129. Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $320,000, and $410,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 30% in the month following the sale. The cash collections in October are: A. $320,000B. $243,000C. $303,200D. $380,000

 

130. Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $250,000, $320,000, and $410,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 30% in the month following the sale. The cash collections in November are: A. $312,000B. $388,400C. $487,000D. $410,000