9. Parlee Company's sales are 20% in cash and 80% on credit. Thirty percent of the credit sales are collected in the month of sale, 50% in the month following sale, and 17% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data: What would total cash receipts in April be budgeted to be? ANS: $127,760 1 Hint: In April the company will collect 17% of February's Credit Sales, which would be calculated: $110,00080%17%. Don't forget that for April, the company will collect 20% of the sales in cash and then 30% of the credit sales, which is calculated: $120,00080%30%. 10. Pardee Company plans to sell 90,000 units during the month of August. If the company has 8,500 units on hand at the start of the month, and plans to have 8,000 units on hand at the end of the month, how many units must be produced during the month? ANS: 89,500 Units 11. Walsh Company expects sales of Product W to be 9,000 units in April, 11,000 units in May and 13,500 units in June. The company desires that the inventory on hand at the end of each month be equal to 20% of the next month's expected unit sales. Given this information, Walsh Company's production of Product W for the month of April should be how many units? ANS: 9,400 units. 12. Superior Industries' sales budget shows quarterly sales for the next year as follows: Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production in units for the second quarter should be: ANS: 118,000 units. Hint: You can calculate the beginning inventory balance for Quarter 1 by multiplying 90,000x 10% 13. ABC Company has a cash balance of $50,000 on April 1 . The company must maintain a minimum cash balance of that amount. During April expected cash receipts are $434,000. Expected cash disbursements during the month total $460,000. During April the company's borrowings will be: ANS: $26,000 14. The Culver Company is preparing its Manufacturing Overhead Budget for the third quarter of the year. Budgeted variable factory overhead is $2.50 per unit produced; budgeted fixed factory overhead is $160,000 per month, with $25,000 of this amount being factory depreciation. Variable factory overhead is paid in the month incurred. If the budgeted cash disbursements for factory overhead for September are $210,000, then the budgeted production in units for September must be? ANS: 30,000 units 15. Tigrade Incorporated's cash budget indicates that they will be required to borrow $6,000 during the first quarter of 2023 . They intend to repay the borrowings at the end of the third quarter. They make borrowings at the beginning of the quarter and make repayments at the end of the quarter. If their annual interest rate is 9%, how much will their interest expense be for the loan? ANS: \$405
