Multiple Choice, Question 102

Reed Merchandising Company expects to purchase $90,000 of materials in July and $105,000 of materials in August. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase.

How much will August's cash disbursements for materials purchases be?

$101,250

$67,500

$78,750

$105,000

Multiple Choice, Question 109

Faucet Company reported the following information for 2008:

October November December

Budgeted sales $620,000 $580,000 $720,000

All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the following month.

How much cash will Faucet receive in November?

$600,000

$650,000

$580,000

$290,000

Multiple Choice, Question 110

The following information was taken from Sloan Company's cash budget for the month of July:

Beginning cash balance $240,000

Cash receipts 152,000

Cash disbursements 272,000

If the company has a policy of maintaining a minimum end of the month cash balance of $200,000, the amount the company would have to borrow is

$48,000.

$80,000.

$120,000.

$40,000.