A company's history indicates that 25% of its sales are for cash and the rest are on credit. Collections on credit sales are 25% in the month of the sale, 40% in the next month, 20% the following month, and 15% is uncollectible. Projected sales for December, January, and February are $67,000, $92,000 and $102,000, respectively. The February expected cash receipts from all current and prior credit sales is:

• A) $41,475

• B) $56,775

• C) $72,075

• D) $18,690

• E) $77,600

Southland Company is preparing a cash budget for August. The company has $17,600 cash at the beginning of August and anticipates $122,000 in cash receipts and $135,700 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000. To maintain the minimum cash balance of $10,000, the company must borrow:

• A) $0.

• B) $10,000.

• C) $6,100.

• D) $7,600.

• E) $27,600.

A companys flexible budget for 19,000 units of production showed sales, $81,700; variable costs, $30,400; and fixed costs, $12,000. The variable costs expected if the company produces and sells 12,000 units is:

• A) $81,700.

• B) $93,700.

• C) $31,200.

• D) $19,200.

• E) $30,400.