Question
Tuscarora, Inc., a merchandising company, has the following budgeted figures: Jan Feb Mar April Sales $54,000.00 $69,000.00 $86,000.00 $95,000.00 Cost of goods sold 50% of
Tuscarora, Inc., a merchandising company, has the following budgeted figures:
| Jan | Feb | Mar | April | |
| Sales | $54,000.00 | $69,000.00 | $86,000.00 | $95,000.00 |
| Cost of goods sold | 50% of sales | |||
| Required ending inventory | $10,000.00 +20% of next month's sales | |||
| Inventory on hand on Jan 1 | $27,500.00 |
Calculate the budgeted purchases for the month of January.
A. $50,800.00
B. $23,300.00
C. $3,200.00
D. $23,800.00
Nyree Company is preparing its budget for the third quarter. The cash balance on June 30 was $32,000.00.
Additional budgeted data are provided here:
| July | Aug | Sep | |
| Cash collections | $53,000.00 | $51,000.00 | $52,000.00 |
| Cash payments | |||
| Purchases of direct materials | 23,000 | 21,000 | 22,000 |
| Operating expenses | 26,000 | 26,000 | 32,000 |
| Capital expenditures | 7,000 | 6,000 | 6,000 |
What amount should be shown in the cash budget for the cash balance at the end of July?
a) 109,000.00
b) 85,000.00
c) 29,000.00
d) 24,000.00
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