8.Assume a merchandising company provides the following information from its master budget for the month of May:

Cost of goods sold	$ 80,000
Cash paid for merchandise purchases	$ 75,000
Selling and administrative expenses	$ 35,000
Cash paid for selling and administrative expenses	$ 28,000
Retained earnings, May 1	$ 18,000
Retained earnings, May 31	$ 23,000

If the company does not pay any interest or dividends, what is its budgeted sales for May?

Garrison 17e Rechecks 2020-07-14

Multiple Choice

• $2,000

• $120,000

• $117,000

• $105,000

9.

ssume that a merchandising company prepared the following sales budget:

September	$ 600,000	November	$ 800,000
October	$ 750,000	December	$ 900,000

The following information is also available:

• Desired ending inventory is $20,000 plus 70% of the next months cost of goods sold.
• Cost of goods sold is always 60% of sales.
• Merchandise purchases are paid 30% in the current month and 70% in the next month.
• Budgeted sales each month are 70% credit and 30% cash.
• 40% of credit customers pay in the current month, 50% pay in the first month after the sale, and 10% pay in the second month after the sale.

What is the budgeted amount of accounts payable at the end of November?

Multiple Choice

• $176,600

• $345,700

• $156,600

• $365,400