Question
Garcia Corporation forecasts sales of 6,200 units in April and 7,700 units in May. Beginning inventory on April 1 is 2,200 units, and the company
Garcia Corporation forecasts sales of 6,200 units in April and 7,700 units in May. Beginning inventory on April 1 is 2,200 units, and the company wants to have 20% of next months sales in inventory at the end of each month. Budgeted purchases in April would be:
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6,200 units.
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8,400 units.
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5,540 units.
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7,740 units.
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Some other amount. Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash payments during August. Southland Company wants to maintain a minimum cash balance of $10,000. To maintain the minimum cash balance of $10,000, the company must borrow:
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$0.
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$10,000.
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$6,700.
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$7,000.
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$27,700.
A companys flexible budget for 12,000 units of production showed sales, $48,000; variable costs, $18,000; and fixed costs, $16,000. The income expected if the company produces and sells 16,000 units is:
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$2,667.
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$14,000.
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$18,667.
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$24,000.
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$35,000.
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