PART A

Information pertaining to Yekstop Corp.'s sales revenue is presented below:

	November				December				January
Cash sales	$	115,000			$	144,000			$	97,000
Credit sales		307,000				469,000				253,000
Total sales	$	422,000			$	613,000			$	350,000

Management estimates that 5% of credit sales are eventually uncollectible. Of the collectible credit sales, 60% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 80% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 55% of the selling prices.

Total budgeted cash collections for Yekstop Corp. in December are:

Multiple Choice

• $523,650.

• $557,320.

• $419,430.

• $505,305.

• $527,990.

PART B

Information pertaining to Yekstop Corp.'s sales revenue is presented below:

	November				December				January
Cash sales	$	96,000			$	125,000			$	78,000
Credit sales		288,000				450,000				234,000
Total sales	$	384,000			$	575,000			$	312,000

Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted inventory purchases in November by Yekstop Corp. are:

Multiple Choice

• $316,350.

• $258,750.

• $527,250.

• $384,000.

• $489,150.