U. Vlaster Budgeting Time: 40 minutes Total: 24 marks The following information pertains to Stark Corporation: Month Sales Jan Feb Mar Apr $30,000 34,000 38,000 42,000 48,000 60,000 Purchases $10,000 12,000 14,000 16,000 18,000 20,000 May June Cash is collected from customers in the following manner: Month of sale Month following sale Two months following sale Amount uncollectible 30% 50% 15% 5% * Customers paying in the month of sale receive a 2% cash discount. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. a. Prepare a summary of cash collections for the 2nd quarter. (12 marks) www.YORKVILLEUCA Question 5: Master Budgeting Time: 30 minutes Total: 16 marks Guava Inc. has the following information: Month February March April Budgeted Sales $60,000 51,000 40,000 70,000 72,000 May June maddition, the cost of goods sold rate is 70% and the desired inventory level is 30% of next mon cost of sales. Required: Prepare a purchases budget for April through June and summarize the total purchases for the quarter. Question: CVP Analysis Time: 25 minutes Total: 10 marks Zara Builders Inc. produces two products, A and B. The following information is presented for both products: Selling price per unit Variable cost per unit $24 $36 28 Total fixed costs are $234,000. Required: (2 marks) Calculate the contribution margin for each product Tozal Sixed Costa $234,000 36-98 b. Calculate break-even point in units of both A and B if the sales mix is 3 units of A for every unit of B (i.e., 75% of sales are from A and 25% of sales are from B). (4 marks)