o: Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000 in January, $50,000 in February, and $60,000 in March. Variable and fixed selling and administrative expenses are as follows: Power cost (30% of sales) Fixed Rent expense: $5,000 per month Power cost/fixed portion: $800 per month expenses: (5% of sales) expense: $8,000 per month expense: $1,400 per month January. OA. $30,400 O B. $37,400 C. S33.900 O D. $14,000 Show transcribed image text o: Pearl, Inc. has prepared the operating budget for the first quarter of the year. The company forecast sales of $40,000 in January, $50,000 in February, and $60,000 in March. Variable and fixed selling and administrative expenses are as follows: Power cost (30% of sales) Fixed Rent expense: $5,000 per month Power cost/fixed portion: $800 per month expenses: (5% of sales) expense: $8,000 per month expense: $1,400 per month January. OA. $30,400 O B. $37,400 C. S33.900 O D. $14,000
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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.