Question :
61. Becham Inc. had the following purchases budgeted for the last : 1291756
61. Becham Inc. had the following purchases budgeted for the last quarter of 2013:
October
$75,000
November
90,000
December
84,000
Becham pays one-half of a month’s purchases in the month of purchase and the remainder in the following month. What are expected cash disbursements for the month of December? A. $124,500B. $ 84,000C. $ 87,000D. $ 42,000
62. Holmes Manufacturing Inc. had the following purchases budgeted for the last six months of 2013:
July
$60,000
August
45,000
September
52,000
October
60,000
November
80,000
December
85,000
Holmes pays one-half of a month’s purchases in the month of purchase and the remainder in the following month. What are expected total cash disbursements for the last quarter of 2013? A. $112,500B. $225,000C. $182,500D. $208,500
63. Merrell Enterprises had the following purchases budgeted for the last six months of 2013:
July
$100,000
August
80,000
September
90,000
October
70,000
November
90,000
December
100,000
Merrell pays one-half of a month’s purchases in the month of purchase and the remainder in the following month. What are expected total cash disbursements for the last quarter of 2013? A. $210,000B. $255,000C. $130,000D. $260,000
64. In December of 2012, Jones Inc. was formed as a corporation. The company plans to start its operations in early January of 2013. They have the following purchases budgeted for the first quarter of 2013:
January
$600,000
February
500,000
March
300,000
Jones has worked out agreements with its various suppliers to pay for one-fourth of a month’s purchases each month, beginning in the month of purchase, until the purchases are paid in full. No purchases were made prior to January.What are expected total cash disbursements for the first quarter of 2013? A. $425,000B. $625,000C. $775,000D. $350,000
65. In September of 2013, Mitford Products Inc. began doing business as a corporation. The company plans to start making its first purchases in October of 2013. They have the following purchases budgeted for the last quarter of 2013:
October
$850,000
November
600,000
December
720,000
Mitford has worked out agreements with its various suppliers to pay for one-third of a month’s purchases each month, beginning in the month of purchase, until the purchases are paid in full. No purchases were made prior to October.What are expected total cash disbursements for the last quarter of 2013? A. $1,490,000B. $ 723,333C. $1,006,667D. $1,446,667
66. Griswald Inc. would like to prepare a summary cash budget for the first quarter of 2013. The following information from the cash receipts and cash disbursements budgets are available:
January
February
March
Cash receipts
$50,000
$72,000
$80,000
Cash disbursements
42,000
75,000
71,000
The company has a beginning cash balance on January 1, 2013 of $5,000. No other receipts and disbursements in the first quarter are expected. What is the cash balance at the end of March expected to be? A. $14,000B. $19,000C. $ 9,000D. $34,000
67. Upton Products Inc. would like to prepare a summary cash budget for the first quarter of 2013. The following information regarding operating activities from the cash receipts and cash disbursements budgets are available:
January
February
March
Cash receipts
$15,000
$23,000
$34,000
Cash disbursements
13,000
26,000
30,000
The following information is also available:
·
The cash balance on January 1, 2013 was $2,000.
·
Equipment costing $4,000 will be purchased in February. A down payment of $1,000 will be made in February and payments of $1,000 will be made in each subsequent month thereafter until the equipment is paid in full.
·
Dividends in the amount of $2,000 will be paid in March.
What is the cash balance at the end of March expected to be? A. $(1,000)B. $ 0C. $ 1,000D. $ 2,000
68. Diamonde Products Inc. would like to prepare a summary cash budget for the second quarter of 2013. The following information regarding operating activities from the cash receipts and cash disbursements budgets are available:
April
May
June
Cash receipts
$10,000
$16,000
$25,000
Cash disbursements
8,000
18,000
16,000
The following information is also available:
·
The cash balance on March 31, 2013 was $3,000.
·
Equipment costing $6,000 will be purchased in May. A down payment of $2,000 will be made in May and payments of $2,000 will be made in each subsequent month thereafter until the equipment is paid in full.
·
Dividends in the amount of $1,000 will be paid in June.
What is the cash balance at the end of June expected to be? A. $1,000B. $7,000C. $9,000D. $5,000
69. Vela Enterprises Inc. would like to prepare a summary cash budget for March. The following information is available:
·
The cash balance at March 1 was estimated to be $3,000.
·
March sales, all on account, were estimated to be $50,000. Sales are collected over a two-month period with 65 percent collected in the month of sale and the remainder in the subsequent month. February sales on account were $60,000.
·
Inventory purchases are expected to be $20,000 in March. The company pays for one-half of inventory purchases in the month of purchase and the remainder in the subsequent month. February’s purchases were $18,000.
·
Cash disbursements for selling and administrative expenses are expected to be $4,000 in March.
·
Depreciation expense for March is expected to be $5,000.
·
Loan and interest payments for March are expected to be $25,000.
What is the cash balance at the end of March expected to be? A. $ 8,500B. $ (3,500)C. $ 3,500D. $26,500
70. Avery Inc. would like to prepare a summary cash budget for June. The following information is available:
·
The cash balance at June 1 was estimated to be $6,000.
·
June sales, all on account, were estimated to be $75,000. Sales are collected over a two-month period with 60 percent collected in the month of sale and the remainder in the subsequent month. May sales on account were $70,000.
·
Inventory purchases are expected to be $50,000 in June. The company pays for one-half of inventory purchases in the month of purchase and the remainder in the subsequent month. May purchases were $60,000.
·
Cash disbursements for selling and administrative expenses are expected to be $9,000 in June.
·
Depreciation expense for June is expected to be $3,000.
What is the cash balance at the end of June expected to be? A. $15,000B. $12,000C. $26,000D. $29,000
