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21) Newton Company preparing its cash budget for the upcoming

Question : 21) Newton Company preparing its cash budget for the upcoming

21) Newton Company is preparing its cash budget for the upcoming month.  The beginning cash balance for the month is expected to be $12,000.  Budgeted cash receipts are $84,000, while budgeted cash disbursements are $72,000.  Newton Company wants to have an ending cash balance of $40,000.  The excess (deficiency) of cash available over disbursements for the month would be:

A)   $24,000

B) $(24,000)

C) $112,000

D) $168,000

22) Webber Company is preparing its cash budget for the upcoming month.  The budgeted beginning cash balance is expected to be $30,000.  Budgeted cash receipts are $101,000, while budgeted cash disbursements are $123,000.  Webber Company wants to have an ending cash balance of $45,000.  How much would Webber Company need to borrow to achieve its desired ending cash balance?

A)  $8,000

B)  $23,000

C)  $37,000

D)  $53,000

23) SuperOffice Company expects its November sales to be 20% higher than its October sales of $180,000.  Purchases were $110,000 in October and are expected to be $160,000 in November.  All sales are on credit and are collected as follows:  30% in the month of the sale and 60% in the following month.  Purchases are paid 40% in the month of               purchase and 60% in the following month.  The cash balance on November 1 is $13,500.  The cash balance on November 30 will be:

A) $42,800.

B) $56,300.

C) $2,300.

D) $29,300.

24) June sales were $5,000 while projected sales for July and August were $6,500 and $7,000, respectively. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. What are the expected collections for July?

A) $6,050

B) $7,550

C) $6,850

D) $5,450

25) Purchases for May were $60,000, while expected purchases for June and July are $75,000 and $92,000, respectively. All purchases are paid 30% in the month of purchase and 70% the following month. At what amount are June payments for purchases budgeted?

A) $64,500

B) $70,500

C) $86,900

D) $92,100

26) McCloud Company has budgeted the following credit sales during the last four months of the year: September, $16,000; October, $22,000; November $21,000; December,               $24,000.  Experience has shown that payment for the credit sales is received as follows:  15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% uncollectible.  How much cash can McCloud Company expect to collect in November as a result of credit sales?

A) $16,400

B) $19,800

C) $16,350

D) $19,550

27) Busch Enterprises has budgeted sales for the months of September and October at $120,000 and $150,000, respectively. Monthly sales are 60% credit and 40% cash. Of the credit sales, 25% are collected in the month of sale and 75% are collected in the following month. What are the October cash collections from customers?

A) $162,000

B) $76,500

C) $136,500

D) $82,500

28) Thomario's Powder Coatings makes payments on its inventory purchases as follows: 25% in the month of purchase, 60% in the following month, and 15% in the second month following purchase. Budgeted inventory purchases for June, July, and August are $15,000, $19,000 and $24,000, respectively. At what amount are cash payments for inventory in August budgeted?

A) $18,750

B) $19,650

C) $8,700

D) $7,650

29) Blaney Lumber's forecasted sales for April; May; June; and July are $200,000; $230,000; $190,000; and $240,000; respectively. Sales are 60% cash and 40% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $60,000 plus 10% of the following month's cost of goods sold. All inventory purchases are paid 20% in the month of purchase and 80% in the following month.

What are the cash collections budgeted for June?

A) $172,000

B) $194,400

C) $206,000

D) $114,000

30) Blaney Lumber's forecasted sales for April; May; June; and July are $200,000; $230,000; $190,000; and $240,000; respectively. Sales are 60% cash and 40% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $60,000 plus 10% of the following month's cost of goods sold. All inventory purchases are paid 20% in the month of purchase and 80% in the following month.

What are the budgeted cash payments in June for inventory purchases?

A) $495,000

B) $315,750

C) $168,150

D) $164,850

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