- Which of the following statements is true?
- Which of the following estimates is notused in preparing a sales budget including a schedule of expected cash collections?
- Which of the following equations is used in a merchandise purchases budget?
- Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $48,000 and $70,000, respectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% in the following month. What is the expected cash collections from credit sales during the first month?
- Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $42,000 and $66,000, respectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month?
- Assume a merchandising company provides the following information from its master budget for the month of May:
| Sales | $ 214,000 |
| Cost of goods sold | $ 76,000 |
| Cash paid for merchandise purchases | $ 71,000 |
| Selling and administrative expenses | $ 31,000 |
| Cash paid for selling and administrative expenses | $ 29,800 |
What is the budgeted net operating income?
- Assume a merchandising company’s estimated sales for January, February, and March are $117,000, $137,000, and $127,000, respectively. Its cost of goods sold is always 30% of its sales. The company always maintains ending merchandise inventory equal to 20% of next month’s cost of goods sold. What are the required merchandise purchases for January?
- Assume that June’s production budget showed required production of 436,000 units, desired ending finished goods inventory of 27,000 units, and beginning finished goods inventory 11,500 units. What were June’s budgeted unit sales?
- Assume a merchandising company provides the following information from its master budget for the month of May:
| Sales | $ 123,000 |
| Cost of goods sold | $ 99,000 |
| Selling and administrative expenses | $ 33,000 |
| Accounts receivable, May 1st | $ 16,000 |
| Accounts receivable, May 31st | $ 23,500 |
If all of the company’s sales are on account, what is the amount of cash collections from customers included in the cash budget for May?
Assume the following budgeted information for a merchandising company:
- Budgeted sales (all on credit) for November, December, and January are $246,000, $216,000, and $207,000, respectively.
- Cash collections of credit sales are expected to be 70% in the month of sale and 30% in the month following the sale.
- The cost of goods sold is always 70% of sales.
- Each month’s ending inventory equals 20% of next month’s cost of goods sold.
- 40% of each month’s merchandise purchases are paid in the current month and the remainder is paid in the following month.
- Monthly selling and administrative expenses that are paid in cash in the month incurred total $24,000.
- Monthly depreciation expense is $23,500.
The expected cash collections from customers in December are:
- Which of the following statements is true?
- Which of the following estimates is notused in preparing a sales budget including a schedule of expected cash collections?
- Which of the following equations is used in a merchandise purchases budget?
- Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $48,000 and $70,000, respectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% in the following month. What is the expected cash collections from credit sales during the first month?
- Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $42,000 and $66,000, respectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month?
- Assume a merchandising company provides the following information from its master budget for the month of May:
| Sales | $ 214,000 |
| Cost of goods sold | $ 76,000 |
| Cash paid for merchandise purchases | $ 71,000 |
| Selling and administrative expenses | $ 31,000 |
| Cash paid for selling and administrative expenses | $ 29,800 |
What is the budgeted net operating income?
- Assume a merchandising company’s estimated sales for January, February, and March are $117,000, $137,000, and $127,000, respectively. Its cost of goods sold is always 30% of its sales. The company always maintains ending merchandise inventory equal to 20% of next month’s cost of goods sold. What are the required merchandise purchases for January?
8.Assume that June’s production budget showed required production of 436,000 units, desired ending finished goods inventory of 27,000 units, and beginning finished goods inventory 11,500 units. What were June’s budgeted unit sales?
9. Assume a merchandising company provides the following information from its master budget for the month of May:
| Sales | $ 123,000 |
| Cost of goods sold | $ 99,000 |
| Selling and administrative expenses | $ 33,000 |
| Accounts receivable, May 1st | $ 16,000 |
| Accounts receivable, May 31st | $ 23,500 |
If all of the company’s sales are on account, what is the amount of cash collections from customers included in the cash budget for May?
- Assume the following budgeted information for a merchandising company:
- Budgeted sales (all on credit) for November, December, and January are $246,000, $216,000, and $207,000, respectively.
- Cash collections of credit sales are expected to be 70% in the month of sale and 30% in the month following the sale.
- The cost of goods sold is always 70% of sales.
- Each month’s ending inventory equals 20% of next month’s cost of goods sold.
- 40% of each month’s merchandise purchases are paid in the current month and the remainder is paid in the following month.
- Monthly selling and administrative expenses that are paid in cash in the month incurred total $24,000.
- Monthly depreciation expense is $23,500.
The expected cash collections from customers in December are: