20) EZ Financing Inc. has prepared the operating budget for the first quarter of 2015. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows:

Variable: Power cost (40% of Sales)

Miscellaneous expenses: (5% of Sales)

Fixed: Salary expense: $8,000 per month

Rent expense: $5,000 per month

Depreciation expense: $1,200 per month

Power cost/fixed portion: $800 per month

Miscellaneous expenses/fixed portion: $1,000 per month

Calculate total selling and administrative expenses for the month of January.

A) $38,500

B) $47,500

C) $41,700

D) $43,000

Note: Supporting computations are required for this problem. Failure to do so will result in loss of points.

21) Mumbai Inc. has prepared the following purchases budget:

Month	Budgeted Purchases
June	$67,000
July	72,500
August	76,300
September	73,700
October	69,200

All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate total cash payments made in October for purchases.

A) $72,630

B) $70,680

C) $70,520

D) $74,290

Note: Supporting computations are required for this problem. Failure to do so will result in loss of points.

22 Mumbai Inc. has prepared the following purchases budget:

Month	Budgeted Purchases
June	$67,000
July	72,500
August	76,300
September	73,700
October	69,200

All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate balance of Accounts payable at the end of October.

A) $77,680

B) $91,760

C) $69,330

D) $74,290

Note: Supporting computations are required for this problem. Failure to do so will result in loss of points.

23) Jackson Corp. has provided a part of its budget for the 2nd quarter:

	Apr	May	June
Cash collections	$40,000	$45,000	$52,000
Cash payments:
Purchases of inventory	4,500	7,200	4,500
Operating expenses	7,900	5,600	9,000
Capital expenditures	0	20,000	4,600

The cash balance on April 1 is $12,000. Assume that there will be no financing transactions or costs during the quarter. Calculate the cash balance at the end of April.

A) $50,000

B) $40,200

C) $39,600

D) $51,800

24) Baltimore Enterprises has budgeted sales for the months of September and October at $300,000 and $280,000, respectively. Monthly sales are 80% credit and 20% cash. Of the credit sales, 50% are collected in the month of sale and 50% are collected in the following month. Calculate cash collections for the month of October.

A) $168,000

B) $232,000

C) $288,000

D) $290,000

Note: Supporting computations are required for this problem. Failure to do so will result in loss of points.