Question
Emerald Corporation has the following information: Month Budgeted Sales May $46,000 June 50,000 July 52,000 August 48,000 The cost of goods sold percentage is 65%
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Emerald Corporation has the following information:
Month Budgeted Sales
May $46,000
June 50,000
July 52,000
August 48,000
The cost of goods sold percentage is 65% and the desired inventory level is 25% of next month's sales. ____________ was the beginning inventory for May.
a. $ 7,475
b. $ 4,025
c. $12,075
d. None of these answers are correct.
QUESTION 7
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Georgia Company has the following information:
Month Budgeted Purchases
January $25,000
February 19,000
March 33,000
April 27,000
May 27,680
Purchases are paid for in the following manner:
75% in the month of purchase
25% in the month after purchase
______________ is the total estimated cash disbursement in March for the purchase of merchandise.
a. $22,500
b. $24,750
c. $29,500
d. $39,000
QUESTION 8
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Ruby Corporation has the following sales budget for the last six months of 2013:
July $100,000 October $90,000
August 80,000 November 100,000
September 110,000 December 94,000
Historically, the cash collection of sales has been as follows:
65% of sales collected in month of sale
25% of sales collected in month following sale
8% of sales collected in second month following sale
2% of sales are uncollectible
Determine the expected cash collection in October.
a. $58,500
b. $92,400
c. $99,500
d. None of the above.
QUESTION 9
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Sapphire Company has the following data:
Month Budgeted Sales
January $108,000
February 132,000
March 144,000
April 120,000
The gross profit rate is 40% and the inventory at the end of December was $19,000. Desired inventory levels are 30% of next month's sales at cost. ______________ is the expected total purchases budgeted for February.
a. $105,120
b. $ 79,200
c. $ 81,360
d. None of these answers are correct.
QUESTION 10
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The following sales budget has been prepared:
Month Cash Sales Credit Sales
September $ 99,000 $250,000
October 225,000 180,000
November 310,000 210,000
December 94,000 170,000
Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale. No uncollectible accounts are anticipated. ____________ is the expected balance of Accounts Receivable as of November 30.
a. $ 77,500
b. $123,000
c. $210,000
d. None of the above.
QUESTION 11
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Viking Company has the following data:
Month Budgeted Sales
January $108,000
February 132,000
March 144,000
April 120,000
Gross profit is 40% of sales revenues, and the inventory at the end of December was $19,000 (at cost). Desired inventory levels are 30% of the costof next month's sales. What is the desired ending inventory for February?
a. $25,920
b. $43,200
c. $17,280
d. $86,400
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CISA Certified Information Systems Auditor Study Guide Aligned With The CISA Review Manual 2019 To Help You Audit Monitor And Assess Information Systems
Authors: Hemang Doshi
1st Edition
1838989587, 978-1838989583
