2 The information given below is Bobcats Company's beginning balance sheet, estimates and policies, and the partially completed Master Budget for January and February, Use the information to answer the 22 Multiple Choice Questions, each asking for a missing number from the Master Budget. Round all your computations to the nearest dollar. Sales are expected to be $30,400 in January, 5100400 in February, end $105,400 in March 2. All sales are on credit and collects 20% of all sales in the month of the sale, the remaining 80% in the month after the sale 3. The cost of goods sold is equal to 40% of sales 4. The company likes to keep an ending inventory on hand equal to 15% of next month's cost of goods sold 5. All purchases of inventory are on account and the company pays for 60% of all purchases in the month of the purchase, 40% in the month after the purchase 6. The company pays its salesforce a commission equal to 3% of sales 7. The company also believes that its miscellaneous expense is equal to $500 plus 2% of sales. B. Rent is $2.000 per month, Supplies are $600 per month and Depreciation is $1,800 per month 9 on January 1st, the company purchased an insurance policy covering 24 months for $28,800 10. All seling and administrative expenses are paid in the more they are incurred except for commissions that are paid in the month after they are eamed and the insurance which is paid two year in advance 11. The company purchased $4,000 of Land on February 18th. They paid cash for the land, 12. Interest on long term debt is equal to 1% of the beginning balance and is paid each month. The company must maintain a minimum balance in cash of $15,000 and will use any surplus to pay down long-term debt. The company borrow cash in $1,000 increments 13. The company is subject to a 30% income tax rate. The company pays income taxes in the month after they are accrued (expensed) 10 The company Board of Directors declared a cash dividend of $950 on January ath. The dividend will be paid on February 10th 15. The company had a beginning balance sheet as of January 1) as follows Assets Liabilities & SE Current Assets Current Liabilities Cash $16,000 Accounts Payable $23,500 Accounts Receivable 48,000 Commissions.yable 3400 Prepaid insurance Olncome Taxes Payable 9.275 Inventory 9.600 Dividends Payable O Total Current Assets 73,600 Total Current Liabilities 36375 2 The information given below is Bobcats Company's beginning balance sheet, estimates and policies, and the partially completed Master Budget for January and February, Use the information to answer the 22 Multiple Choice Questions, each asking for a missing number from the Master Budget. Round all your computations to the nearest dollar. Sales are expected to be $30,400 in January, 5100400 in February, end $105,400 in March 2. All sales are on credit and collects 20% of all sales in the month of the sale, the remaining 80% in the month after the sale 3. The cost of goods sold is equal to 40% of sales 4. The company likes to keep an ending inventory on hand equal to 15% of next month's cost of goods sold 5. All purchases of inventory are on account and the company pays for 60% of all purchases in the month of the purchase, 40% in the month after the purchase 6. The company pays its salesforce a commission equal to 3% of sales 7. The company also believes that its miscellaneous expense is equal to $500 plus 2% of sales. B. Rent is $2.000 per month, Supplies are $600 per month and Depreciation is $1,800 per month 9 on January 1st, the company purchased an insurance policy covering 24 months for $28,800 10. All seling and administrative expenses are paid in the more they are incurred except for commissions that are paid in the month after they are eamed and the insurance which is paid two year in advance 11. The company purchased $4,000 of Land on February 18th. They paid cash for the land, 12. Interest on long term debt is equal to 1% of the beginning balance and is paid each month. The company must maintain a minimum balance in cash of $15,000 and will use any surplus to pay down long-term debt. The company borrow cash in $1,000 increments 13. The company is subject to a 30% income tax rate. The company pays income taxes in the month after they are accrued (expensed) 10 The company Board of Directors declared a cash dividend of $950 on January ath. The dividend will be paid on February 10th 15. The company had a beginning balance sheet as of January 1) as follows Assets Liabilities & SE Current Assets Current Liabilities Cash $16,000 Accounts Payable $23,500 Accounts Receivable 48,000 Commissions.yable 3400 Prepaid insurance Olncome Taxes Payable 9.275 Inventory 9.600 Dividends Payable O Total Current Assets 73,600 Total Current Liabilities 36375