b. the Cash Budget. c. the General and Administrative Budget d. the Purchases Budget 1 with regards to financial statements,Pro Forma" means: ted. prepared in advance c. the financial condition or position that can be expected if planning assumptions prove correct. d. all of the above. 14, which of the following will occur if June sales are higher than its budgeted sales for that month? a. Actual July purchases will need to be lower than originally budgeted. b. Actual inventory at the end of June will be lower than originally budgeted. e. Actual June Cost of Goods Sold (COGS) would be lower than originally budgeted. d. Actual Revenues will be lower than budgeted for the month of June. e All of the above could occur. 15. Zeigler, Inc. budgeted for sales of 30,000 units for July and 40,000 for August. The Company always plans for ending monthly inventory equal to one-half of the following month's sales needs. Inventory on July 1st was as desired. Budgeted purchases for July should be: a. 25,000 units b. 27,500 units c. 35,000 units d. 40,000 units e. None of the above. The correct answer is: Champagne &Onda, Inc. expects to begin operating on January 1. The company's Master Budget contained the following Operating Expense (i.e. S,G&A) Budget: $18,000 March $18,00 Salary expense Sales commissions, 5% of sales Utilities Depreciation on store equipment Rent Miscellaneous $20,00 15,000 1,400 900 3,600 14,000 1,400 12,000 1,400 3,60 $38,800 Total operating expenses 16. Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other relevant expense items are to be paid in the month in which they are recognized. Based upon these assumptions, and your analysis of the costs involved, the amount of cash to be paid for operating (S,G&A) expenses during the month of February should be: a. $25,900 b. $26,800 c. $35,900 d. $38,900 e. None of the above is within $200 of the correct