QUESTION 16 Not yet answered Marked out of 14.00 P Flag question Budgeting Cash Flow The following various elements relate to Murphy, Inc.'s cash budget for October of the current year. For each item, determine the amount of cash that Murphy should receive or pay in October. a. At $25 each, unit sales are 10,000 and 12,000 for September and October, respectively. Total sales are typically 30% for cash and 70% on credit; 40% of credit sales are collected in the month of sale, with the balance collected in the following month. Uncollectible accounts are negligible. September sales October cash sales October credit sales Cash collected in October b. Merchandise purchases were $44,000 and $77,000 for September and October, respectively. Typically 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month. September purchases $ October purchases Cash paid in October c. Fixed administrative expenses, which total $16,000 per month, are paid in the month incurred. Variable administrative expenses amount to 20% of total monthly sales revenue, 65% of which is paid in the month incurred, with the balance paid in the following month. October fixed expenses September variable expenses October variables expenses Cash paid in October Cash collected in October b. Merchandise purchases were $44,000 and $77,000 for September and October, respectively. Typically 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month September purchases $ October purchases Cash paid in October$ c. Fixed administrative expenses, which total $16,000 per month, are paid in the month incurred. Variable administrative expenses amount to 20% of total monthly sales revenue, 65% of which is paid in the month incurred, with the balance paid in the following month October fixed expenses September variable expenses October variables expenses Cash paid in October d. Fixed selling expenses, which total $4,200 per month, are paid in the month incurred. Variable selling expenses, which are 5% of total sales revenue, are paid in the month following their incurrence October fixed expenses September variable expenses Cash paid in October Save Answers Previous page Next page