4. Which of the following budgets are prepared before the purchases budget? Production budget a. Yes b. Yes C. No d. No Sales budget Yes No Yes No Answer 5. Sixty percent of Apple Company's sales are collected in the month of sale, 30% in the month Following sale, and 10% in the second month following sale. The following are budgeted sales: January Total sales $600,000 February March April $700,000 $500,000 $600,000 Total budgeted cash collections in April would be: a. $400,000 b. $520,000 c. $580,000 d. $640,000 e. None of the above. The answer is Answer Questions #6 and 7 Refer to the following data [NOT Quiz] Chief Broody Company is a small wholesaler of fish products. Data regarding the store's operations follows: Sales are budgeted at $330,000 for November; $400,000 for December; and $360,000 for January. Collections are expected to be 85% in the month of sale; 12% in the month following sale; and 3% uncollectible. The Cost of Goods Sold is 60% of sales. The company would like to maintain ending inventory equal to 70% of the next month's Cost of Goods Sold. Payment for merchandise is made in the month following purchase. Other monthly expenses to be paid in cash are $21,800. 6. The cost of December merchandise purchases would be: a. $196,200 b. 212,400 c. $ 223,200 227,400 d. e. None of the above. The answer is Answer 7. December cash disbursements [payments] for merchandise purchases would be: a. $196,200 b. 212,400 c. $223,200 d. 227,400 e. None of the above. The answer is Answer