Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounting QUESTION 5 1. Arnold Company Pty Ltd made these estimates for the three months ending 30 June 2010, its first period of operation. The

Accounting

image text in transcribed
QUESTION 5 1. Arnold Company Pty Ltd made these estimates for the three months ending 30 June 2010, its first period of operation. The beginning cash balance is $1,000. Cash receipts from sales $300 000 Cash payments for expenses 130 000 Payment for the purchase of new motor vehicle 15 000 Depreciation of motor vehicle 15 000 Repayment of a loan 100 000 2. What is the estimated cash balance at 30 June 2010? a. $55000 deficit b. $155000 surplus c. $56000 surplus d. $50000 surplus e. $40000 surplus 1 points QUESTION 6 1. From the following data calculate the estimated cash received from credit sales during the month of May. Credit sales for March, $25 000; April, $30 000; May, $18 000. Credit sales are normally settled in the following pattern: 50% in the month of sale, 40% in the month following the sale, and 10% in the second month following the sale a. $12 000 b. $23 500 c. $9 000 d. $18 000 e. $21 000 1 points QUESTION 7 1. Carlon Lid currently manufactures 10,000 compressors per year in one of its production lines. The variable costs per unit are $50 and the total fixed costs of this production line are $250,000 per year. Robson Ltd has contacted Carlon Lid with an offer to sell to it 10,000 compressors for $48 each. If the compressors are purchased from Carlon Ltd a cost of $16,000 per year would be incurred for quality control. Assume the fixed costs are unavoidable. Should Carlon Lid make or buy the compressors? Why? a. Buy, because profit would increase by $4,000 b. Make, because if buy the compressors, profit would decrease by $4,000 C. Make, because if buy the compressors, there is no reduction in the current fixed costs d. Make, because if buy the compressors, the fixed cost increased by $16,000 e. Buy. because the current fixed costs will be reduced by $16.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

16th Edition

1337913103, 9781337913102

More Books

Students also viewed these Accounting questions

Question

Relax your shoulders

Answered: 1 week ago

Question

Keep your head straight on your shoulders

Answered: 1 week ago

Question

Be straight in the back without blowing out the chest

Answered: 1 week ago