The Kelsey Company sells a product for $10. Budgeted sales for the first quarter of next year are as follows:

		Budgeted Sales
	January	$400,000
	February	$600,000
	March	$700,000

The company collects 70% in the month of sale and 25% in the following month. Five percent of all sales are uncollectible and written off.

Budgeted cash receipts for March are:

Select one:

a. $640,000

b. $490,000

c. $670,000

d. $700,000

Patiomaster Products manufactures patio furniture. The estimated numbers of sets to be sold for the last three months of 2022 is:

	Month	Sales
	October	10,000
	November	7,000
	December	5,000
	January	6,000

Finished goods inventory at the end of September is expected to be 3,000 units. Finished goods inventory is set at 30 percent of next month's sales.

If a patio set costs $100 to produce, what will be the cost of sales in the budgeted income statement for the period October to December 2022?

Select one:

a. $2,200,000

b. $1,800,000

c. $1,900,000

d. $2,800,000

e. none of these

Sales in December were $960,000. Projected sales for the first quarter of next year are:

	January	$1,080,000
	February	$1,300,000
	March	$1,280,000

Sales are 20% cash and 80% on credit. Debtors pay in the month following the sale.

Calculate the total cash sales for the three months, January, February and March.

Select one:

a. $732,000

b. $256,000

c. $960,000

d. $2,848,000

e. none of these

Beecham Company has the following purchases budgeted for the last quarter of this year:

	October	$75,000
	November	$90,000
	December	$84,000

Beecham pays one-half of a month's purchases in the month of purchase and the remainder in the following month.

What are expected cash disbursements for the month of December?

Select one:

a. $124,500

b. $84,000

c. $87,000

d. $42,000