Knowledge Check $01$

For the budget period ending December $31$ of the current year, Aaron Corporation estimates its ending balances for cash as $$4,000,$ accounts receivable as $$16,000,$ finished goods inventory as $$12,000,$ and raw materials inventory as $$8,000.$ Invoices relating to raw materials in the amount of $$14,000$ are expected to be unpaid as of December $31.$ What is the amount of total current assets that will be reported on the budgeted balance sheet?

multiple choice $1$

$$20,000$

$$26,000$

$$32,000$

$$40,000$

Knowledge Check $02$

Film Studio, Incorporated has beginning retained earnings of $$80,000$ and expects to earn net income of $$70,000$ during the budget period. What would be the budgeted ending balance in retained earnings if the company declares and pays dividends of $$50,000?$

multiple choice $2$

$$80,000$

$$100,000$

$$150,000$

$$200,000$