141.The cash collections expected in October are
a. $320,000
b. $248,000
c. $304,250
d. $382,500
142.The cash collections in November are
a. $317,750
b. $389,750
c. $490,000
d. $410,000
143.Fashion Jeans, Inc. sells two lines of jeans; Simple Life and Fancy Life. Simple Life sells for $85, and Fancy Lifesells for $100. The company sells all of its jeans on credit and estimates that 60% is collected in the month of thesale, 35% is collected in the following month, and the rest is considered to be uncollectible. The estimated sales forSimple are: January, 20,000 jeans; February, 27,500 jeans; and March, 25,000 jeans. The estimated sales for Fancyare: January, 18,000 jeans; February, 19,000; and March, 20,500 jeans. What are the expected cash receipts for themonth of March?
a. $3,988,125
b. $2,505,000
c. $2,125,000
d. $4,175,000
A company is preparing its cash budget. Its cash balance on January 1 is $290,000 and it has a minimum cashrequirement of $340,000. The following data has been provided:
|
January
|
February
|
March
|
Cash receipts
|
$1,061,200
|
$1,182,400
|
$1,091,700
|
Cash payments
|
984,500
|
1,210,000
|
1,075,000
|
144.What is the amount of the deficiency or excess cash (after considering the minimum cash balance required) forJanuary?
a.excess of $26,700
b.deficiency of $136,700
c.excess of $356,700
d.excess of $60,000
145.What is the amount of cash excess or deficiency (after considering the minimum cash balance required) forFebruary?
a.deficiency of $109,100
b.excess of $10,900
c.deficiency of $900
d.excess of $109,100
146.What is the amount of cash excess or deficiency (after considering the minimum cash balance required) forMarch?
a.excess of $214,200
b.excess of $15,800
c.deficiency of $60,000
d.excess of $25,300
147.When preparing the cash budget, all the following should be considered
except
a.cash receipts from customers
b.depreciation expense
c.cash payments to suppliers
d.cash payments for equipment
148.Which of the following would
notbe used in preparing a cash budget for October?
a.beginning cash balance on October 1
b.budgeted salaries expense for October
c.estimated depreciation expense for October
d.budgeted sales and collections for October
149.Southern Company is preparing a cash budget for April. The company has $12,000 cash at the beginning of Apriland anticipates $30,000 in cash receipts and $34,500 in cash disbursements during April. Southern Company has anagreement with its bank to maintain a minimum cash balance of $10,000. To maintain the required balance duringApril, the company must
a.borrow $4,500
b.borrow $2,500
c.borrow $7,500
d.borrow $5,000
150.Tara Company’s budget shows the following credit sales for the current year: September, $25,000? October,$36,000; November, $30,000; December, $32,000. Experience has shown that payment for credit sales is receivedas follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5%is uncollectible. How much cash will Tara Company expect to collect in November as a result of current and pastcredit sales?
a. $19,700
b. $28,400
c. $30,000
d. $31,100
151.A company’s history indicates that 20% of its sales are for cash and the rest are on credit. Collections on creditsales are 20% in the month of the sale, 50% in the next month, 25% the following month, and 5% isuncollectible. Projected sales for December, January, and February are $60,000, $85,000, and $95,000,respectively. The February expected cash receipts from all current and prior credit sales is
a. $61,200
b. $57,000
c. $66,400
d. $90,250