Question : 101. Harold’s expects its September sales to be 20% higher : 1256665

101. Harold’s expects its September sales to be 20% higher than its August sales of $150,000. Purchases were $100,000 in August and are expected to be $120,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month. The beginning cash balance on September 1 is $7,500. The ending cash balance on September 30 would be:A.  $31,500B.  $67,500C.  $54,000D.  $61,500E.  $136,500

102. A company expects its September sales to be 15% higher than its August sales of $140,000. Purchases were $75,000 in August and are expected to be $85,000 in September. All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month. The beginning cash balance on September 1 is $71,500. The ending cash balance on September 30 would be:A.  $121,800B.  $148,700C.  $140,300D.  $143,700E.  $135,300

103. The Palos Company expects sales for June, July, and August of $48,000, $54,000, and $44,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 50% of its credit sales in the month following sale, 45% in the second month following sale, and 5% are not collected. What are the company’s expected cash receipts for August from its current and past sales?A.  $29,160B.  $46,760C.  $61,160D.  $66,200E.  $78,800

Reference: 20_03

Berkley Co.’s sales are 10% for cash and 90% on credit. Credit sales are collected as follows:  30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $12,000 from November sales and $42,000 from December sales.

104. Assume that total sales for January are budgeted to be $50,000. What are the expected cash receipts for January from the current and past sales? Round all calculations to full dollar amounts.A.  $18,500B.  $51,500C.  $51,900D.  $55,500E.  $60,500

105. Assume that total sales for January and February are budgeted to be $50,000 and $100,000, respectively. What are the expected cash receipts for February from current and past sales? Round all calculations to full dollar amounts.A.  $80,500B.  $71,500C.  $34,500D.  $61,500E.  $59,500

106. Pecan Company had March sales and purchases of $63,000 and $47,000 respectively. The company expects April sales to increase 12% above March sales and purchases to stay consistent with March amounts. Twenty percent of the company’s sales are for cash. Credit sales are collected 20% in the month of the sale and 80% in the following month. All purchases are paid for in the month following the purchase. The beginning cash balance on April 1 is $42,000. What is Pecan Company’s expected cash balance on April 30?A.  $46,609.60B.  $105,880.00C.  $70,801.60D.  $60,721.60E.  $49,432.00.

107. To determine the production budget for an accounting period, consideration is not given to which of the following:A.  Budgeted ending inventory.B.  Budgeted beginning inventory.C.  Budgeted sales.

D.  Budgeted overhead.E.  Required units of inventory available.

108. A plan that shows the predicted costs for direct materials, direct labor, and overhead to be incurred in manufacturing the units in the production budget is called the:A.  Sales budget.B.  Merchandise purchases budget.C.  Production budget.D.  Rolling budget.E.  Manufacturing budget.

109. A plan that states the number of units to be manufactured during each future period covered by the budget, based on the budgeted sales for the period and the levels of inventory needed to support future sales, is the:A.  Sales budget.B.  Merchandise purchases budget.C.  Production budget.D.  Cash budget.E.  Manufacturing budget.

Reference: 20_04

Kyoto, Inc. predicts the following sales in units for the coming four months: 

April

May

June

July

Sales in units

240

280

300

240

Although each month’s ending inventory of finished units should be 60% of the next month’s sales, the March 31 finished goods inventory is only 100 units. A finished unit requires five pounds of raw material B. The March 31 raw materials inventory has 200 pounds of B. Each month’s ending inventory of raw materials should be 30% of the following month’s production needs.

110. Kyoto’s budgeted production for May is:A.  200 unitsB.  212 unitsC.  268 unitsD.  280 unitsE.  292 units