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1. Muscat Inc. is working on its cash budget for December. The budgeted beginning cash balance is $10,000. Budgeted cash receipts total $70,000 and
1. Muscat Inc. is working on its cash budget for December. The budgeted beginning cash balance is $10,000. Budgeted cash receipts total $70,000 and budgeted cash disbursements total $75,000. The desired ending cash balance is $40,000. To attain its desired ending cash balance for December, the company needs to borrow: BA. $0 B. $25,000 C. $35,000 D. $40,000 2. Al Nebras Company has budgeted production for next year as follows: Production in Units 1st Year Q1 30,000 Q2 40,000 Q3 Q4 50,000 60,000 Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the second quarter would be: A. 400,000 pounds B. 208,000 pounds C. 216,000 pounds D. 168,000 pounds
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