| | $39,660 2.) | Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $39,000. Budgeted cash receipts total $120,000 and budgeted cash disbursements total $114,000. The desired ending cash balance is $59,500. To attain its desired ending cash balance for May, the company needs to borrow: | | | $59,500 | | | $104,500 | | | $0 | | | $14,500 3.) | Mitchell Company had the following budgeted sales for the first half of next year: | | | Cash Sales | Credit Sales | | January | $70,000 | $170,000 | | February | $75,000 | $190,000 | | March | $32,000 | $150,000 | | April | $37,000 | $132,000 | | May | $47,000 | $220,000 | | June | $100,000 | $220,000 | | The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: | | Collections on credit sales: | | 50% in month of sales | | 40% in month of following sales | | 10.0% in second month following sales | | Assume that the accounts receivable balance on January 1 was $65,000. Of this amount, $47,000 represented uncollected December sales and $18,000 represented uncollected November sales. Given these data, the total cash collected during January would be: | | | $238,000 | | | $210,600 | | | $94,000 | | | $291,000 4.) | Avril Company makes collections on sales according to the following schedule: | | 40% in the month of sale | | 56% in the month following sale | | 4% in the second month following sale | | The following sales have been are expected: | | | Expected Sales | | January | $150,000 | | February | $160,000 | | March | $150,000 | | Budgeted cash collections in March should be budgeted to be: | | | $155,600 | | | $150,600 | | | $150,000 | | | $149,600 5.) | Veltri Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.76 direct labor-hours. The direct labor rate is $10.50 per direct labor-hour. The production budget calls for producing 7,000 units in October and 6,800 units in November. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 5,480 hours in total each month even if there is not enough work to keep them busy. What would be the total combined direct labor cost for the two months? | | | $125,664.00 | | | $111,804.00 | | | $115,080.00 | | | $110,124.00 6.) | Vandel Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 2,900 units are planned to be sold in April. The variable selling and administrative expense is $3.40 per unit. The budgeted fixed selling and administrative expense is $35,790 per month, which includes depreciation of $4,400 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expense on the April selling and administrative expense budget should be: | | | 41,250 | | | 9,860 | | | 31,390 | | | 45,650 7.) | Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $16,000. Budgeted cash receipts total $185,000 and budgeted cash disbursements total $184,000. The desired ending cash balance is $30,000. The excess (deficiency) of cash available over disbursements for June will be: | | | $1,000 | | | $201,000 | | | $15,000 | | | $17,000 | 8.) | Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. | | | Beginning Inventory | Ending Inventory | | Finished goods (units) | 26,000 | 76,000 | | Raw material (grams) | 56,000 | 46,000 | | Each unit of finished goods requires 2 grams of raw material. | | If the company plans to sell 730,000 units during the year, the number of units it would have to manufacture during the year would be: | | | 806,000 units | | | 674,000 units | | | 730,000 units | | | 780,000 units | | | | | | |
