1.Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $36,000 and $39,500, respectively. It also expects credit sales of $56,000 and $66,000, respectively. The company expects to collect 60% of its credit sales in the month of the sale, 35% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the companys cash budget for the second month?

Garrison 17e Rechecks 2020-07-14

Multiple Choice

• $98,700

• $95,900

• $89,100

• $39,600

2.Assume a companys estimated sales is 21,000 units. Its desired ending finished goods inventory is 4,500 units, and its beginning finished goods inventory is 1,500 units. What is the required production in units?

Multiple Choice

• 15,000 units

• 27,000 units

• 19,500 units

• 24,000 units

3.

Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $42,000 and $71,000, respectively. The company expects to collect 45% of its credit sales in the month of the sale and the remaining 55% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month?

Multiple Choice

• $50,850

• $31,950

• $39,050

• $55,050