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The following information is for question 25 to 28: The Doley Company has planned the following sales for the next three months: January February March

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The following information is for question 25 to 28: The Doley Company has planned the following sales for the next three months: January February March Budgeted Sales $40,000 $50,000 $70,000 Sales are made 20% for cash and 80% on account. From experience, the company has learned that sales on account are collected according to the following pattern: Month of sale First month following sale Second month following sale Uncollectible Total on Account collections 60% 30% 8% 2% 100% Other information: Inventory purchases (all paid in March) $28,000 Operating expenses (all paid in March) 40.000 Depreciation expense for March 5,000 Dividends paid in March 4.000 Total 77,000 25. Cash receipts for March are closest to: A. 48,160 B. 50,000 C. 60,200 D. 62,160 E 70,000 26. Accounts Receivable at March 31 are closest to: A. 3,200 B. 21,280 C. 24,480 D. 30,600 E. 32,000 27. Cash Disbursements for the month of March are closest to: A. 68,000 B. 70.000 C. 72,000 D. 73,000 E. 77,000 ADM 2341 Final Exam-Surence 20 7 28. Cash balance at the end of March is closest to: A. (4,000) B. Zero C. 4.000 D. 8,000 E. 12,000 The following information is for question 25 to 28: The Doley Company has planned the following sales for the next three months: January February March Budgeted Sales $40,000 $50,000 $70,000 Sales are made 20% for cash and 80% on account. From experience, the company has learned that sales on account are collected according to the following pattern: Month of sale First month following sale Second month following sale Uncollectible Total on Account collections 60% 30% 8% 2% 100% Other information: Inventory purchases (all paid in March) $28,000 Operating expenses (all paid in March) 40.000 Depreciation expense for March 5,000 Dividends paid in March 4.000 Total 77,000 25. Cash receipts for March are closest to: A. 48,160 B. 50,000 C. 60,200 D. 62,160 E 70,000 26. Accounts Receivable at March 31 are closest to: A. 3,200 B. 21,280 C. 24,480 D. 30,600 E. 32,000 27. Cash Disbursements for the month of March are closest to: A. 68,000 B. 70.000 C. 72,000 D. 73,000 E. 77,000 ADM 2341 Final Exam-Surence 20 7 28. Cash balance at the end of March is closest to: A. (4,000) B. Zero C. 4.000 D. 8,000 E. 12,000

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