Question :
169.Billy Bob Tacos pays for 40% of its inventory purchases : 1302863
169.Billy Bob Tacos pays for 40% of its inventory purchases in the month of the purchase and the remainder in the following month. The company’s inventory purchases totaled $850,000 in October, $980,000 in November, and $720,000 in December. The company also paid for new equipment with a total cost of $520,000 in November and made an income tax payment of $130,000 in December. Salaries and wages were paid as follows: $310,000 in October, $300,000 in November and $295,000 in December. Determine the company’s cash disbursements for November and December.
170.At January 1, 2014, Wallace, Inc. has beginning inventory of 4,000 widgets. Wallace estimates it will sell 35,000 units during the first quarter of 2014 with a 10% increase in unit sales each quarter. Wallace’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each widget costs $1 to purchase and is sold for $1.50. How much is budgeted sales revenue for the third quarter of 2014?
171.Clips, Inc. budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels are planned for the fiscal year ending June 30, 2014:
July 1, 2013June 30, 2014
Oximate40,000 pounds36,000 pounds
Widgets80,000 units50,000 units
Three pounds of oximate are needed to produce each widget. If Clips plans to sell 480,000 widgets during the year ending June 30, 2014, how many widgets will it need to produce during the year?
172.East Lansing Mall expects to make purchases in the first quarter of 2015 as follows:
January $ 80,000
February 122,000
March 74,000
Purchases in December of 2014 are expected to be $93,000. The company expects that 35% of a month’s purchases will be paid in the month of purchase and the balance will be paid in the following month. Calculate budgeted cash disbursements related to purchases for February of 2015.
173.ProSlade expects credit sales in the next quarter as follows:
April $ 90,000
May 110,000
June 113,000
Prior experience has shown that 30% of a month’s sales are collected in the month of sale, 40% in the month following sale, and 28% in the second month following sale. February and March sales were $90,000 and $100,000, respectively. Uncollectible accounts are written off under the allowance method at 80 days after the end of the month in which the sale was made.
Calculate budgeted cash receipts for May.
How much is Accounts Receivable on ProSlade’s May 31 balance sheet?
174.In the fourth quarter of 2014, Winston Wheels had the following net income:
Sales $400,000
Less cost of sales 150,000
Gross margin 250,000
Selling and administration costs 110,000
Income before taxes 140,000
Income taxes 42,000
Net income $ 98,000
Purchases in the fourth quarter of 2014 amounted to $170,000. Estimated data for 2015 follow:
FirstSecondThirdFourth
QuarterQuarterQuarterQuarter
Sales $300,000 $350,000 $400,000 $450,000
Cost of sales 170,000 200,000 230,000 150,000
Purchases 200,000 230,000 250,000 280,000
Selling and admin. 110,000 110,000 110,000 110,000
Taxes are 30% of pretax income and are paid in the month of accrual.
All sales are on credit and 30% are collected in the quarter of sale and 70% are collected in the next quarter.
40% of purchases are paid in the quarter of purchase and 60% in the next quarter.
Selling and administrative expenses are paid in the quarter incurred.
There is $11,000 of depreciation included in selling and administrative expense.
A capital expenditure for $40,000 is planned for the fourth quarter of 2015.
Calculate total cash receipts for the second quarter of 2015.
Submit file using Webcam PhotoWebcam PhotoSubmit file using Canvas FilesCanvas Files