Question :
61. Cicero Manufacturing Inc. sells gloves at local ski resorts during : 1295646
61. Cicero Manufacturing Inc. sells gloves at local ski resorts during the winter months. Each pair of gloves sells for $15. The following sales forecast (in units) has been prepared for October 2005 through March 2008:
October
500
November
800
December
1,000
January
1,200
February
900
March
600
Historically, the cash collection of sales has been as follows: 60 percent in the month of sale, 35 percent in the month following sale, and 4 percent in the second month following sale. The remaining 1 percent is uncollectible.Cash receipts for January are expected to be: A. $13,170B. $51,975C. $10,800D. $16,530
62. Taylor Inc. sells and installs residential water heaters. Its customers pay for their water heaters over four months by paying in equal, monthly installments. The sales price of an installed water heater is $600. Taylor sold and installed the following number of water heaters in the first six months of 2008:
January
80 units
February
100 units
March
70 units
April
84 units
May
90 units
June
75 units
Cash receipts for June are expected to be: A. $ 74,850B. $118,050C. $ 47,850D. $191,400
63. Browning Inc. has projected the following sales information for the fourth quarter of 2008:
October
November
December
Cash sales
$ 19,000
$ 26,000
$ 32,000
Credit sales
35,000
45,000
60,000
Total sales
$ 54,000
$ 71,000
$ 92,000
Credit sales are collected over a two-month period, with 60 percent collected in the month of sale and 40 percent collected in the month following sale.Total cash collections for December are: A. $86,000B. $54,000C. $83,600D. $68,000
64. Boylan Inc. has projected the following sales information for the first quarter of 2008:
January
February
March
Cash sales
$ 20,000
$ 35,000
$ 40,000
Credit sales
43,000
57,000
55,000
Total sales
$ 63,000
$ 92,000
$ 95,000
Credit sales are collected over a two-month period, with 55 percent collected in the month of sale and 45 percent collected in the month following sale.Total cash collections for March are: A. $55,900B. $93,650C. $70,250D. $95,900
65. Becham Inc. had the following purchases budgeted for the last quarter of 2008:
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
66. Holmes Manufacturing Inc. had the following purchases budgeted for the last six months of 2008:
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 2008? A. $112,500B. $225,000C. $182,500D. $208,500
67. Merrell Enterprises had the following purchases budgeted for the last six months of 2008:
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 2008? A. $210,000B. $255,000C. $130,000D. $260,000
68. In December of 2007, Jones Inc. was formed as a corporation. The company plans to start its operations in early January of 2008. They have the following purchases budgeted for the first quarter of 2008:
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 total cash disbursements expected for the first quarter of 2008? A. $425,000B. $625,000C. $775,000D. $350,000
69. In September of 2008, Mitford Products Inc. began doing business as a corporation. The company plans to start making its first purchases in October of 2008. They have the following purchases budgeted for the last quarter of 2008:
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 2008? A. $1,490,000B. $ 723,333C. $1,006,667D. $1,446,667
70. Griswald Inc. would like to prepare a summary cash budget for the first quarter of 2008. 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, 2008 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