91. A Company is preparing a cash budget for June. The company has $67,000 cash at the beginning of June and anticipates $82,330 in cash receipts and $93,520 in cash disbursements during June. This...

91. A Company is preparing a cash budget for June. The company has $67,000 cash at the beginning of June and anticipates $82,330 in cash receipts and $93,520 in cash disbursements during June. This company has an agreement with its bank to maintain a cash balance of at least $65,000. As of May 31, the company owes $25,000 to the bank. To maintain the $65,000 required balance, during June the company must:
A. Borrow $9,190
B. Repay $13,190
C. Borrow $25,000
D. Repay $25,000
E. Repay $9,190

Reference: 20_02

Julia's Candy Co. reports the following information from its sales account and sales budget:

Cash sales are normally 25% of total sales and all credit sales are expected to be collected in the month following the date of sale.

92. Based on the information from Julia’s, the total amount of cash expected to be received from customers in September is:
A. $30,000
B. $82,500
C. $112,500
D. $120,000
E. $202,500

93. Based on the information from Julia’s, the total amount of cash expected to be received from customers in July is:

A. $69,750

B. $90,000

C. $92,250

D. $22,500

E. $115,500

94. If Julia’s pays sales commission of 10% each month, in addition to monthly fixed costs of $4,000, what are selling expenses for the third quarter?

A. $32,000

B. $36,000

C. $40,000

D. $44,000

E. $48,000

95. A company reports the following information from its sales account and sales budget:

Cash sales are normally 30% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in September is:
A. $58,500
B. $56,500
C. $60,000
D. $80,500
E. $55,000

96. Lara Company has budgeted the following credit sales during the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000. Experience has shown that payment for the credit sales is received as follows: 20% in the month of sale, 60% in the first month after sale, and 20% in the second month after sale. What will be the balance in Accounts Receivable at the end of November assuming the payment patterns have been as described?
A. $26,600
B. $31,200
C. $33,800
D. $39,600
E. $25,200

97. Lara Company has budgeted the following credit sales during the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000. Experience has shown that payment for the credit sales is received as 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 can Lara Company expect to collect in November as a result of current and past credit sales?
A. $19,700
B. $28,500
C. $30,000
D. $31,100
E. $33,900

98. In preparing a budgeted balance sheet, the amount for Accounts Receivable is primarily determined from:
A. The purchase budget.
B. The sales budget.
C. The capital expenditures budget.
D. The budgeted income statement.
E. The selling expenses budget.

99. Long-term liability data for the budgeted balance sheet is derived from:
A. The cash budget and capital expenditures budget.
B. The cash budget and sales budget.
C. The cash budget and budgeted income statement.
D. The sales budget and production budget.
E. The asset budget and debt budget.

100. In preparing financial budgets:
A. The budgeted balance sheet is usually prepared last.
B. The cash budget is usually not prepared.
C. The budgeted income statement is usually not prepared.
D. The capital expenditures budget is usually prepared last.
E. The merchandise purchases budget is key.