2)Sparks Corporation has a cash balance of $16,500 on April 1. The company must maintain a minimum cash balance of $13,500. During April, expected cash receipts are $63,000. Cash disbursements during the month are expected to total $74,500. Ignoring interest payments, during April the company will need to borrow:

Multiple Choice

• $8,500

• $5,000

• $13,500

• $11,500

3) The LaGrange Corporation had the following budgeted sales for the first half of the current year:

		Cash Sales		Credit Sales
January	$	30,000	$	130,000
February	$	35,000	$	150,000
March	$	41,000	$	110,000
April	$	36,000	$	121,000
May	$	46,000	$	180,000
June	$	60,000	$	150,000

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on sales:

40% in month of sale

40% in month following sale

20% in second month following sale

The accounts receivable balance on January 1 of the current year was $81,000, of which $60,000 represents uncollected December sales and $21,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 31?

Multiple Choice

• $111,200

• $108,000

• $132,200

• $243,400

4) Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

• Sales are budgeted at $450,000 for November, $430,000 for December, and $420,000 for January.
• Collections are expected to be 40% in the month of sale and 60% in the month following the sale.
• The cost of goods sold is 75% of sales.
• The company would like to maintain ending merchandise inventories equal to 65% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
• Other monthly expenses to be paid in cash are $25,100.
• Monthly depreciation is $16,100.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	21,100
Accounts receivable		71,100
Merchandise inventory		219,375
Property, plant and equipment, net of $573,100 accumulated depreciation		1,095,100
Total assets	$	1,406,675
Liabilities and Stockholders' Equity
Accounts payable	$	255,100
Common stock		821,100
Retained earnings		330,475
Total liabilities and stockholders' equity	$	1,406,675

The cost of December merchandise purchases would be:

Multiple Choice

• $337,500

• $204,750

• $317,625

• $322,500