Please provide answer for the following questions along with formula and step by step explanation?
Suppose a rm prepares a 6monthly cash budget, inventory budget, accounts receivable budget and accounts payable budget, and sees that ONE of these budgets forecasts a zero balance at some time within the next E: months. Which of these budgets would cause the LEAST concern to the rm if the balance fell to zero? Select one: a. Accounts Payable b. Inventory 3: c. Accounts Receivable d.Cash A rm expects to achieve the following level of sales, to make the following purchases of raw materials, and to make the following payments for indirect expenses for the first 4 months of the year. All sales and purchases of raw materials are on credit, and are paid for in the following month. Indirect expenses are paid for in the month they are incurred. Sales in December totalled $76 and purchases of raw materials in December totalled $57. The opening cash balance at the beginning of Januaryr was Si 12. What is the budgeted closing cash balance at the end of April? Sales Purchases of raw materials Indirect expenses Jan 74 53 l7 16 l9 Tl A rm expects to achieve the following level of sales, to make the following purchases of raw materials, and to make the following payments for indirect expenses for the rst 4 months of the year. All sales and purchases of raw materials are on credit. 90% of sales are paid for in the month after the sale, with the balance paid in the following month. 60% of purchases are paid for in the month after the purchase, with the balance paid in the following month. Indirect expenses are paid for in the month they are incurred. Sales in December totalled 878 and purchases of raw materials in December totalled $57. The opening cash balance at the beginning of January was 8106. What is the budgeted closing balance of accounts receivable (rounded to the nearest dollar) at the end of April? Jan Feb Mar Apr Sales 72 7'0 72 74 Purchases of raw materials 54 54 58 56 Indirect expenses l4 l8 13 17 A rm expects to achieve the following level of sales, to make the following purchases of raw materials, and to make the following payments for indirect expenses for the rst 4 months of the year. All sales and purchases of raw materials are on credit. .70% of sales are paid for in the month after the sale, with the balance paid in the following month. 60% of purchases are paid for in the month after the purchase, with the balance paid in the following month. Indirect expenses are paid for in the month they are incurred. Sales in December totalled S78 and purchases of raw materials in December totalled $56. The opening cash balance at the beginning of January was 8109. What is the budgeted closing balance of accounts payable (rounded to the nearest dollar) at the end of April? Jan Sales ?8 Purchases of raw materials 54 Indirect expenses i9 A rm expects to achieve the following level of sales, to have the following cost of goods sold, and to make the following purchases of raw materials for the first 4 months of the year. The opening balance of inventory at the beginning of January was $218. What is the budgeted closing balance of inventory at the end of April? Jan Sales 78 Cost of goods sold 47 Purchases of raw materials 58
