1. The WRT Corporation makes collections on sales according to the following schedule: 45% in month of sale 51% in month following sale 4% in second month following sale The following sales have been are expected: Expected Sales April $190,000 May $180,000 June $170,000 Budgeted cash collections in June should be budgeted to be:

A.$168,300

B.$175,900

C.$170,760

D.$170,000

2. Which of the following budgets are prepared before the production budget?

	Direct Materials Budget	Sales Budget
A)	Yes	Yes
B)	Yes	No
C)	No	Yes
D)	No	No

3. Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $35,000. Budgeted cash receipts total $116,000 and budgeted cash disbursements total $110,000. The desired ending cash balance is $51,500. To attain its desired ending cash balance for May, the company needs to borrow:

A.$92,500

B.$0

C.$10,500

D.$51,500

4.Sioux Corporation is estimating the following sales for the first four months of next year:

January	$260,000
February	$230,000
March	$270,000
April	$320,000

Sales are normally collected 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?

A.$192,000

B.$286,500

C.$94,500

D.$320,000

5.Which of the following is NOT an objective of the budgeting process?

A.To provide a means of allocating resources to those parts of the organization where they can be used most effectively.

B.To communicate management's plans throughout the entire organization.

C.To uncover potential bottlenecks before they occur.

D.To ensure that the company continues to grow.