1.

Purchases in May were $65,000, while expected purchases for June and July are $78,000 and $87,000, respectively. All purchases are paid 40% in the month of purchase and 60% in the following month. At what amount are June payments for purchases budgeted?

A.

$72,800

B.

$105,000

C.

$70,200

D.

$92,000

2.

June sales were

$2,000

while projected sales for July and August were

$8,600

and

$4,000,

respectively. All credit sales are collected in the month following the sale. Sales are

70%

credit and

30%

cash. What are the total expected collections for July?

A.

$5,380

B.

$6,620

C.

$5,180

D.3980