1.

The Stanley Company expects its sales to be $100,000 for the first quarter of 2017. It estimates that sales will increase by $10,000 each quarter. Based on past experience, it estimates that 60% of each quarter's sales will be charged by the customer, 75% of which will be collected in that same quarter and 25% of which will be collected in the following quarter. The beginning balance in the Accounts Receivable account is $14,400, all of which will be collected in cash in the first quarter. What amount of the Accounts Receivable will be collected in the fourth quarter?

Group of answer choices

$58,500

$97,500

$12,900

$76,500

2.

The goal sought in the preparation of a flexible budget is to indicate the costs expected to be incurred at varying levels of output.

Group of answer choices

True

False

3.

Fanon Company estimates that the variable cost of producing 300,000 units (capacity production) is $20,000 and incorporates this figure into its budget for 2016. However, in 2016 the company actually produces at only 95% of capacity. Assuming the company had a $1,600 unfavorable variance, the actual costs incurred were:

Group of answer choices

$19,000

$20,600

$21,600

$17,400

4.

Budgets are:

Group of answer choices

usually not very reliable for evaluation purposes.

based on past experience adjusted for future expectations.

usually not adjusted for future economic conditions.

based only on the future, ignoring past experience.