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1. A company's gross profit rate is 30% of sales. Expected January sales are $78,000 and desired January 31^st inventory is $7,500. Assuming the December 31^st inventory is $6,200 what amount of purchases should this company budget for the month of January?

A)24,700

(B)55,900

(C)53,300

(D)22,100

(E)79,300

2. A company's data is presented below. Desired ending inventory is a consistent percentage of the next quarter's sales and the previous year's 4th quarter ending inventory of 560 units meets this requirement. Compute the expected production in the 3rd Quarter of the current year.

Quarter: 1 2 3 4

Expected Sales Units: 7,000 5,000 8,000 6,000

Units Produced: 6,840 ? ? ?

(A)8,000

(B)7,360

(C)7,840

(D)8,480

(E)8,160

3. Lara Company has budgeted the following credit sales during the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible. How much cash can Lara Company expect to collect in November as a result of current and past credit sales

(A)$28,500

(B)$31,100

(C)$19,700

(D) $33,900

(E)$30,000

4. To determine the production budget for an accounting period, consideration is not given to which of the following:

(A) Budgeted beginning inventory

(B) Budgeted overhead

(C) budgeted sales

(D) Required units of inventory available

(E) Budgeted ending inventory

5.Lingstat Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 15% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 5,000 units, 6,000 units, and 4,000 units, respectively. How many units must be purchased in September?

(A) 6,300 (B)5,700 (C)5,850 (D)6,600 (E)6,150

6.A Company is preparing a cash budget for June. The company has $67,000 cash at the beginning of June and anticipates $82,330 in cash receipts and $93,520 in cash disbursements during June. This company has an agreement with its bank to maintain a cash balance of at least $65,000. As of May 31, the company owes $25,000 to the bank. To maintain the $65,000 required balance, during June the company must:

(A) Repay $13,190

(B) borrow $25,000

(C) Borrow $9,190

(D) Repay $9,190

(E) Repay $25,000