the following information pertains to the october operating budget for flockhart cor 4312044

the following information pertains to the october operating budget for flockhart cor 4312044

The following information pertains to the October operating budget for Flockhart Corporation.

?Budgeted sales for October $100,000 and November $200,000.

?Collections for sales are 60% in the month of sale and 40% the next month.

?Gross margin is 30% of sales.

?Administrative costs are $10,000 each month.

?Beginning accounts receivable (October 1) $20,000.

?Beginning inventory (October 1) $14,000.

?Beginning accounts payable (October 1) $60,000.  (All from inventory purchases.)

?Purchases are paid in full the following month.

?Desired ending inventory is 20% of next month's cost of goods sold (COGS).

?No loans are outstanding on October 1

32) For October, budgeted cash collections are:

A) $20,000.

B) $60,000.

C) $80,000.

D) None of the above is correct.

33) At the end of October, budgeted accounts receivable is:

A) $20,000.

B) $40,000.

C) $60,000.

D) None of the above is correct.

34) For October, budgeted cost of goods sold is:

A) $20,000.

B) $30,000.

C) $40,000.

D) None of the above is correct.

35) For October, budgeted net income is:

A) $20,000.

B) $30,000.

C) $40,000.

D) None of the above is correct.

36) For October, budgeted cash payments for purchases are:

A) $14,000.

B) $60,000.

C) $70,000.

D) None of the above is correct.

37) At the end of October, budgeted ending inventory is:

A) $20,000.

B) $28,000.

C) $40,000.

D) None of the above is correct.

The following information for the second quarter of 2011 pertains to Huffington Company:

Month

Sales

Purchases

April

  $90,000

$48,000

May

$120,000

$60,000

June

$150,000

$84,000

•  Cash is collected from customers in the following manner:

Month of sale

30%

Month following the sale

70%

              •  40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.

•  Labor costs are 20% of sales.  Other operating costs are $45,000 per month (including $12,000 of depreciation).  Both of these are paid in the month incurred.

•The cash balance on June 1 is $6,000.  A minimum cash balance of $4,500 is required at the end of the month.  Money can be borrowed in multiples of $3,000.

•No loans outstanding on June 1.

38) How much cash will be collected from customers in June?

A) $129,000

B) $141,000

C) $150,000

D) None of the above is correct.

39) How much cash will be paid to suppliers in June?

A) $69,600

B) $56,000

C) $88,000

D) None of the above is correct.

40) How much cash will be disbursed for labor and operating costs in June?

A) $63,000

B) $70,000

C) $88,400

d.  $96,400

41) What is the ending cash balance for June?

A) ($50,000)

B) $6,000

C) $5,400

D) $11,400

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