Question
Assume a merchandising companys estimated sales for January, February, and March are $104,000, $124,000, and $114,000, respectively. Its cost of goods sold is always 60%
Assume a merchandising companys estimated sales for January, February, and March are $104,000, $124,000, and $114,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 15% of next months cost of goods sold. It pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?
Multiple Choice
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$66,990
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$63,990
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$69,990
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$68,990
Assume a merchandising company provides the following information from its master budget for the month of May:
Sales | $ 226,000 |
---|---|
Cost of goods sold | $ 79,000 |
Cash paid for merchandise purchases | $ 74,000 |
Selling and administrative expenses | $ 34,000 |
Cash paid for selling and administrative expenses | $ 33,400 |
What is the budgeted net operating income?
Multiple Choice
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$128,600
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$113,000
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$39,000
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$5,600
Assume a company provided the following information:
Gross margin percentage | 40 | % | |
Sales | $ | 475,000 | |
Inventory balance, beginning of the year | $ | 20,000 | |
Inventory balance, end of the year | $ | 30,000 | |
Net income | $ | 10,000 | |
The inventory turnover is closest to:
Garrison 17e Rechecks 2020-10-09
Multiple Choice
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10.
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14.
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11.
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17.
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