Question :
81. A company’s gross profit rate 30% of sales. Expected : 1256663
81. A company’s gross profit rate is 30% of sales. Expected January sales are $78,000 and desired January 31st inventory is $7,500. Assuming the December 31st inventory is $6,200 what amount of purchases should this company budget for the month of January?A. $53,300B. $55,900C. $24,700D. $22,100E. $79,300
82. Kabuki Company’s policy is to have 16% of the next month’s sales as desired ending inventory. Estimated sales are shown in the following table. Given this data, what are Kabuki’s estimated purchases for March?
March
April
May
Expected sales units
9,400
8,900
7,300
A. 9,400B. 9,320C. 8,900D. 8,644 E. 8,820
84. When preparing the cash budget, all the following should be considered except:A. Cash receipts from customers.B. Cash payments for merchandise.C. Depreciation expense.D. Cash payments for income taxes.E. Cash payments for capital expenditures.
85. A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans, is called a(n):A. Capital expenditures budget.B. Operating budget.C. Rolling budget.D. Cash budget.E. Income statement.
86. Which budget must be completed after a cash budget is prepared?
A. Capital expenditures budget.B. Sales budget.C. Merchandise purchases budget.D. General and administrative expense budget.E. Budgeted income statement
87. Which of the following would not be used in preparing a cash budget for October?A. Beginning cash balance on October 1.B. Budgeted sales and collections for October.C. Estimated depreciation expense for October.D. Budgeted salaries expense for October.E. Budgeted capital equipment purchases for October.
88. A managerial accounting report that presents predicted amounts of the company’s revenues and expenses for the budget period is called a:A. Budgeted income statement.B. Budgeted balance sheet.C. Master plan.D. Rolling income statement.
E. Continuous income statement.
89. A managerial accounting report that presents predicted amounts of the company’s assets, liabilities, and equity as of the end of the budget period is called a(n):A. Rolling balance sheet.B. Continuous balance sheet.C. Budgeted balance sheet.
D. Cash balance sheet.E. Operating balance sheet.
90. Northern Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Northern Company has an agreement with its bank to maintain a cash balance of at least $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:A. Borrow $4,500B. Borrow $2,500C. Borrow $10,000D. Repay $7,500E. Repay $2,500
