4) Pearson Advising will have cash receipts of $35,000 in April and cash disbursements of $30,000 for this month. If its beginning cash is $5,000 and its desired reserve is $2,000, what will its excess be for April?

A) There is no excess but a shortfall.

B) $5,000

C) $7,000

D) $8,000

Answer:D

5) Managers know that for cash and credit sales completed in one month that all will be recorded as sales revenue in that month, but that the actual cash flow will take place over a longer period of time because of ________.

A) credit sales

B) erosion

C) foreclosure

D) transit time

6) The sales for October, November and December are $10,000, $12,000 and $18,000, respectively. For any particular month of sales, the following percentages are received over time in cash: 20% in cash from that same month of sales; 50% in cash from the previous month's sales; and, 30% in cash from the sales from two months ago. What amount of cash will be received during December?

A) $12,600

B) $12,000

C) $9,600

D) $9,000

7) The sales for January, February, and March are $50,000, $80,000 and $120,000, respectively. For any particular month of sales, the following percentages are received over time in cash: 40% in cash from that same month of sales; 50% in cash from the previous month's sales; and, 10% in cash from the sales from two months ago. What amount of cash will be received during March?

A) $93,000

B) $97,500

C) $108,000

D) $120,000

8) Northwest Packing Inc. estimates the following expenditures: total shipping costs of $1,100; wages paid to workers of $9,600; overhead costs of $4,300; raw materials of $5,000; and, dividends and interest paid of $2,200. What is the total production cost from all of these costs?

A) $22,200

B) $21,100

C) $20,100

D) $20,000

9) A company estimates the following expenditures: preferred dividends paid of $22,200; wages paid to workers of $49,600; overhead costs of $24,300; raw materials of $45,000; shipping costs of $12,100. What are the total production costs?

A) $131,000

B) $134,500

C) $142,100

D) $153,200