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13. MC.22.129.ALGO (Algorithmic) Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business
13. MC.22.129.ALGO (Algorithmic) Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business September, October, and November are $230,000, $317,000, and $426,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale. The cash collections expected in October from accounts receivable are estimated to be a. $209,720 b. $177,520 c. $251,664 d. $145,320 14. MC.22.131.ALGO (Algorithmic) Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* Insurance expense** $158,100 $191,200 $206,300 910 910 910 Depreciation expense 2,190 2,190 2,190 Property tax expense 560 560 560 * Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $910 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). ***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are a. $139,703 b. $158,100 c. $118,575 d. $121,305
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