Question : 121. Estimated cash payments planned reductions in cash from all of : 1239555

 

 

121. Estimated cash payments are planned reductions in cash from all of the following except: A. manufacturing and operating expensesB. capital expendituresC. notes and accounts receivable collectionsD. payments for interest or dividends

 

122. Management accountants usually provide for a minimum cash balance in their cash budgets for which of the following reasons: A. stockholders demand a minimum cash balanceB. to comply with U.S. GAAPC. it provides a safety buffer for variations in estimatesD. to have funds available for major capital expenditures

 

123. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $260,000, $375,000, and $400,000, respectively, for September, October, and November. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections in September from accounts receivable are: A. $223,600B. $145,600C. $182,000D. $168,000

 

124. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $260,000, $375,000, and $400,000, respectively, for September, October, and November. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections in October from accounts receivable are: A. $246,400B. $262,500C. $210,000D. $294,500

 

125. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $260,000, $375,000, and $400,000, respectively, for September, October, and November. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections in November from accounts receivable are: A. $280,000B. $316,400C. $295,200D. $276,500

 

126. 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 April are: A. $122,600B. $120,600C. $123,100D. $121,100

 

127. 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 May are: A. $185,600B. $149,900C. $187,600D. $189,100

 

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

 

129. 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

 

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. $$74,000B. $110,000C. $71,600D. $131,600