20) EZ Financing Inc. has prepared the operatingbudget for the first quarter of 2015. They forecast sales of$50,000 in January, $60,000 in February, and $70,000 in March.Variable and fixed expenses are as follows:
Variable: Power cost (40% of Sales)
Miscellaneous expenses: (5% of Sales)
Fixed: Salary expense: $8,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
Calculate total selling and administrative expenses for themonth of January.
A) $38,500
B) $47,500
C) $41,700
D) $43,000
Note: Supporting computations are required for thisproblem. Failure to do so will result in loss ofpoints.
21) Mumbai Inc. has prepared the following purchases budget:
Month
Budgeted Purchases
June
$67,000
July
72,500
August
76,300
September
73,700
October
69,200
All purchases are paid for as follows: 10% in the month ofpurchase, 50% in the following month, and 40% two months afterpurchase. Calculate total cash payments made in October forpurchases.
A) $72,630
B) $70,680
C) $70,520
D) $74,290
Note: Supporting computations are required for thisproblem. Failure to do so will result in loss ofpoints.
22 Mumbai Inc. has prepared the following purchases budget:
Month
Budgeted Purchases
June
$67,000
July
72,500
August
76,300
September
73,700
October
69,200
All purchases are paid for as follows: 10% in the month ofpurchase, 50% in the following month, and 40% two months afterpurchase. Calculate balance of Accounts payable at the end ofOctober.
A) $77,680
B) $91,760
C) $69,330
D) $74,290
Note: Supporting computations are required for thisproblem. Failure to do so will result in loss ofpoints.
23) Jackson Corp. has provided a part of its budgetfor the 2nd quarter:
Apr
May
June
Cash collections
$40,000
$45,000
$52,000
Cash payments:
Purchases of inventory
4,500
7,200
4,500
Operating expenses
7,900
5,600
9,000
Capital expenditures
0
20,000
4,600
The cash balance on April 1 is $12,000. Assume that there willbe no financing transactions or costs during the quarter. Calculatethe cash balance at the end of April.
A) $50,000
B) $40,200
C) $39,600
D) $51,800
24) Baltimore Enterprises has budgeted sales for the months ofSeptember and October at $300,000 and $280,000, respectively.Monthly sales are 80% credit and 20% cash. Of the credit sales, 50%are collected in the month of sale and 50% are collected in thefollowing month. Calculate cash collections for the month ofOctober.
A) $168,000
B) $232,000
C) $288,000
D) $290,000
Note: Supporting computations are required for thisproblem. Failure to do so will result in loss ofpoints.
20) EZ Financing Inc. has prepared the operatingbudget for the first quarter of 2015. They forecast sales of$50,000 in January, $60,000 in February, and $70,000 in March.Variable and fixed expenses are as follows:
Variable: Power cost (40% of Sales)
Miscellaneous expenses: (5% of Sales)
Fixed: Salary expense: $8,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,200 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
Calculate total selling and administrative expenses for themonth of January.
A) $38,500
B) $47,500
C) $41,700
D) $43,000
Note: Supporting computations are required for thisproblem. Failure to do so will result in loss ofpoints.
21) Mumbai Inc. has prepared the following purchases budget:
Month | Budgeted Purchases |
June | $67,000 |
July | 72,500 |
August | 76,300 |
September | 73,700 |
October | 69,200 |
All purchases are paid for as follows: 10% in the month ofpurchase, 50% in the following month, and 40% two months afterpurchase. Calculate total cash payments made in October forpurchases.
A) $72,630
B) $70,680
C) $70,520
D) $74,290
Note: Supporting computations are required for thisproblem. Failure to do so will result in loss ofpoints.
22 Mumbai Inc. has prepared the following purchases budget:
Month | Budgeted Purchases |
June | $67,000 |
July | 72,500 |
August | 76,300 |
September | 73,700 |
October | 69,200 |
All purchases are paid for as follows: 10% in the month ofpurchase, 50% in the following month, and 40% two months afterpurchase. Calculate balance of Accounts payable at the end ofOctober.
A) $77,680
B) $91,760
C) $69,330
D) $74,290
Note: Supporting computations are required for thisproblem. Failure to do so will result in loss ofpoints.
23) Jackson Corp. has provided a part of its budgetfor the 2nd quarter:
Apr | May | June | |
Cash collections | $40,000 | $45,000 | $52,000 |
Cash payments: | |||
Purchases of inventory | 4,500 | 7,200 | 4,500 |
Operating expenses | 7,900 | 5,600 | 9,000 |
Capital expenditures | 0 | 20,000 | 4,600 |
The cash balance on April 1 is $12,000. Assume that there willbe no financing transactions or costs during the quarter. Calculatethe cash balance at the end of April.
A) $50,000
B) $40,200
C) $39,600
D) $51,800
24) Baltimore Enterprises has budgeted sales for the months ofSeptember and October at $300,000 and $280,000, respectively.Monthly sales are 80% credit and 20% cash. Of the credit sales, 50%are collected in the month of sale and 50% are collected in thefollowing month. Calculate cash collections for the month ofOctober.
A) $168,000
B) $232,000
C) $288,000
D) $290,000
Note: Supporting computations are required for thisproblem. Failure to do so will result in loss ofpoints.