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16) Upstairs Company has the following data: Month Budgeted Sales January$108,000 February132,000

Question : 16) Upstairs Company has the following data: Month Budgeted Sales January$108,000 February132,000 : 1419246

 

16) Upstairs Company has the following data:

 

Month        Budgeted Sales

January$108,000

February132,000

March144,000

April120,000

 

The gross profit rate is 40% of sales and ending inventory at December 31 was $19,440. Desired ending inventory levels are 30% of next month's sales at cost. What are the expected total purchases for February?

A) $79,200

B) $81,360

C) $102,960

D) $105,120

17) Sebring Company has the following data:

 

Month       Budgeted Sales

April$40,000

May44,000

June50,000

July52,000

August48,000

 

The cost of goods sold percentage is 70% of sales and the desired ending inventory level is 25% of next month's sales at cost. ________ was the beginning inventory on May 1.

A) $3,300

B) $7,700

C) $8,750

D) $11,000

 

18) Segal Company has the following data:

 

Month       Budgeted Sales

May$46,000

June50,000

July52,000

August49,000

 

The cost of goods sold percentage is 80% of sales and the desired ending inventory level is 25% of next month's sales at cost. What is the beginning inventory on August 1?

A) $4,200

B) $8,450

C) $9,800

D) $10,400

19) Bronkov Company has the following data:

 

Month       Budgeted Sales

May$46,000

June50,000

July52,000

August48,000

 

The cost of goods sold percentage is 65% of sales and the desired ending inventory level is 25% of next month's sales at cost. What are the expected total purchases for June?

A) $17,500

B) $32,500

C) $32,825

D) $40,950

 

20) Audrey Company has the following data:

 

Month       Budgeted Sales

May$46,000

June50,000

July52,000

August48,000

 

The cost of goods sold percentage is 65% of sales and the desired ending inventory is 25% of next month's sales at cost. What are the total purchases budgeted for July?

A) $33,150

B) $33,800

C) $41,600

D) $42,250

21) Santelle Company expects August sales to be $30,000. Approximately 40% of sales are cash sales. Collection of credit sales are 50% in the month of sale, 40% in the month following sale and 5% two months following sale. The remaining 5% is uncollectible. ________ is the expected cash collection in August from August sales.

A) $9,000

B) $12,000

C) $21,000

D) $36,000

 

22) Hoover Company expects June sales to be $30,000. Of these sales, credit sales are expected to be $12,000. Collection of credit sales are 50% in the month of sale, 40% in the month following sale and 5% two months following sale. The remaining 5% is uncollectible. ________ is the expected cash collection in June from June sales.

A) $9,200

B) $14,000

C) $17,200

D) $24,000

 

23) Bush Company expects May sales to be $20,000. Approximately 40% of sales are cash sales. Collection of credit sales are 50% in the month of sale, 40% in the month following sale and 5% two months following sale. The remaining 5% is uncollectible. ________ is the expected cash collection in May from May sales.

A) $4,000

B) $6,000

C) $8,000

D) $14,000

24) The following sales budget has been prepared:

 

Month         Cash Sales    Credit Sales

September$167,000$123,000

October225,000180,000

November330,000210,000

December135,000190,000

 

Collections of credit sales are 50% in the month of sale, 40% in the month following sale, and 10% two months following sale. No uncollectible accounts are expected. What are the estimated cash collections in December?

A) $135,000

B) $197,000

C) $325,000

D) $332,000

 

25) Stickel Company has the following sales budget:

 

Month           Cash Sales    Credit Sales

September$100,000$200,000

October125,000190,000

November207,000199,000

December67,000144,000

 

Collection of credit sales are 50% in the month of sale, 40% in the month following sale, and 10% two months following sale. No uncollectible accounts are expected. What is the expected balance of Accounts Receivable at October 31?

A) $95,000

B) $110,000

C) $115,000

D) $180,000

 

 

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