O'Reilly, Inc. has prepared its third quarter budget and provided the following data:

	Jul	Aug	Sep
Cash collections	$ 49 comma 000$49,000	$ 39 comma 700$39,700	$ 47 comma 800$47,800
Cash payments:
Purchases of direct materials	28 comma 00028,000	21 comma 40021,400	18 comma 10018,100
Operating expenses	12 comma 50012,500	8 comma 8008,800	11 comma 30011,300
Capital expenditures	13 comma 30013,300	25 comma 10025,100	0

The cash balance on June 30 is projected to be

$ 4 comma 500$4,500.

The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of

55%.

All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the amount of principal repayment at the end of September.

A.

$5,000

B.

$ 10 comma 000$10,000

C.

$ 15 comma 000$15,000

D.

$ 20 comma 000$20,000

Magnolia, Inc. has budgeted sales for the first quarter of the next year to be

40 comma 00040,000

units. The inventory on hand at the beginning of quarter is

5 comma 0005,000

units. The desired ending inventory is

5 comma 0005,000

units. Calculate the budgeted production for the first quarter.

A.

5 comma 0005,000

units

B.

40 comma 00040,000

units

C.

45 comma 00045,000

units

D.

35 comma 00035,000

units

Manhattan Enterprises manufactures cookware sets and sells the sets to department stores. Manhattan expects to sell 2,400 cookware sets for $200 each in April and 3,500 cookware sets for$215 each in May. Sales are 15% cash and 85% on account. Compute the total budgeted sales for May.

A.

$752,500

B.

$480,000

C.

$9,594,375

D.

$112,875

Risa, Inc. has provided the following extracts from their budget for the first quarter of the forthcomingyear:

	Jan	Feb	March
Purchases on account	$ 273 comma 000$273,000	$ 292 comma 000$292,000	$ 360 comma 000$360,000

The vendors are allowed the following terms of payment:

Month of purchase	1010%
First month after the purchase	3535%
Second month after the purchase	3535%

Calculate the total payment on account for the month of March.

A.

$ 233 comma 750$233,750

B.

$ 360 comma 000$360,000

C.

$ 127 comma 980$127,980

D.

$ 177 comma 975$177,975