Question :
51. In a summary cash budget, the total cash available calculated : 1291755
51. In a summary cash budget, the total cash available is calculated by: A. adding the cash receipts and deducting the cash disbursements from the beginning cash balance.B. adding the cash receipts to the beginning cash balance.C. adding the cash receipts and borrowings to the beginning cash balance.D. adding the cash balance before borrowing to interest on line of credit.
52. Cash outflows for overhead expenditures is shown on: A. the materials purchases budget.B. the investing activity section of the cash summary budget.C. the cash disbursements budget.D. the cash receipts budget.
53. Cash outflows for interest on line of credit will be shown: A. on the cash receipts budget.B. in the investing activity section of the cash summary budget.C. on the summary cash budget.D. on the selling and administrative expense budget
54. Cash received by borrowing from line of credit will be shown: A. on the summary cash budget.B. in the investing activity section of the cash summary budget.C. on the cash disbursements budget.D. on the operating activity section of the cash summary budget.
55. Ingalls Mercantile Inc. sells bolts of fabric to retailers for $80 per bolt. The company’s accountant has prepared the following sales forecast (in bolts) for the first quarter of 2013:
January
600 bolts
February
1,000 bolts
March
700 bolts
Historically, the cash collection of sales has been as follows: 60 percent in the month of sale, 30 percent in the month following sale, and 9 percent in the second month following sale.Cash receipts for March are expected to be: A. $ 61,920B. $182,160C. $ 33,600D. $ 57,840
56. Blooming Products Inc. sells flower bulbs to local nurseries. Each bag of bulbs sells for $2. The company’s accountant has prepared the following sales forecast (in bags) for the fourth quarter of 2013:
October
5,000 bags
November
9,000 bags
December
8,000 bags
Historically, the cash collection of sales has been as follows: 50 percent in the month of sale, 40 percent in the month following sale, and 10 percent in the second month following sale.Cash receipts for December are expected to be: A. $13,800B. $ 8,000C. $16,200D. $ 8,100
57. 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 2012 through March 2013:
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
58. 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 2013:
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
59. Browning Inc. has projected the following sales information for the fourth quarter of 2013:
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
60. Boylan Inc. has projected the following sales information for the first quarter of 2013:
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
