Question : 128. Finch Company began its operations March 31 of the current : 1226975

128. 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 yearly 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. $215,500
B. $188,800
C. $214,000
D. $212,000

129. Planning for capital expenditures is necessary for all of the following reasons except: 
A. machinery and other fixed assets wear out
B. expansion may be necessary to meet increased demand
C. amounts spent for office equipment may be immaterial
D. fixed assets may fall below minimum standards of efficiency

130. 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 2012 were as follows: $120,000, $140,000 and $150,000. 20% of each month’s 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. $$74,000
B. $110,000
C. $71,600
D. $131,600

131. 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 month’s 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. $129,600
B. $62,400
C. $133,600
D. $91,200

132. 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 month’s 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. $74,800
B. $146,800
C. $102,000
D. $116,800

133. 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 2012 were as follows: $120,000, $140,000 and $150,000. 20% of each month’s 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. $72,000
B. $48,000
C. $58,720
D. $$60,000

134. 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. $320,000
B. $243,000
C. $303,200
D. $380,000

135. 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. $312,000
B. $388,400
C. $487,000
D. $410,000

136. Fashion Jeans, Inc. sells two lines of jeans; Simple Life and Fancy Life. Simple Life sells for $85.00 a pair and Fancy Life sells for $100.00 a pair. The company sells all of its jeans on credit and estimates that 60% is collected in the month of the sale, 35% is collected in the following month, and the rest is considered to be uncollectible. The estimated sales for Simple are as follows: January 20,000 jeans, February 27,500 jeans, and March 25,000 jeans. The estimated sales for Fancy are as follows: January 18,000 jeans, February 19,000, and March 20,500 jeans. What are the expected cash receipts for the month of March? 
A. $3,988,125
B. $2,505,000
C. $2,125,000
D. $4,175,000

137. The operating budgets of a company include: 
A. the cash budget
B. the capital expenditures budget
C. the financing budget
D. the production budget