1. Gregory Company has budgeted the following credit sales during the last four months of the year: September, $14,000; October, $15,000; November $18,000; December, $34,000. Experience has shown that payment for the credit sales is received as follows: 50% in the month of sale, 43% in the first month after sale, 5% in the second month after sale, and 2% uncollectible. How much cash can Gregory Company expect to collect in November as a result of credit sales?

A.

$15,450

B.

$16,830

C.

$7,150

D.

$16,150

2.

Frontlist Publishing Company publishes books and they have gathered the following data for the month of October:

	Data
Cash on 8/1	$5,000
Expected Cash Collections	$352,000
Direct Materials Cash Disbursements	$67,000
Direct Labor Cash Disbursements	$45,000
MOH Cash Disbursements	$38,000
Operating Expenses Cash Disbursements	$88,000
Capital Expenditures Cash Disbursements	$131,000

Frontlist Publishing Company requires an ending cash balance of at least $5,000 and can borrow from a line of credit in $1,000 increments. What is the excess or deficiency of cash for October?

A.

$12,000

cash deficiency

B.

$5,000 cash excess

C.

$29,000

cash deficiency

D.

$17,000

cash excess