Which of the following statements, about operational budgets, is not true?

Multiple Choice

• Contain expenses.

• Are based on estimates.

• Are used primarily by companies having financial problems.

• Are based on a companys goals.

• Contain revenues.

Bengal Co. provides the following sales forecast for the next three months:

	July			August			September
Sales units		1,500			2,800			3,500

The company wants to end each month with ending finished goods inventory equal to 15% of the next month's sales. Finished goods inventory on June 30 is 1,745 units. The budgeted production units for August are:

Multiple Choice

• 4,020 units.

• 2,905 units.

• 3,745 units.

• 3,325 units.

• 5,345 units.

A company reports the following information from its sales budget:

Expected Sales:	July	$	55,000
	August		68,400
	September		75,350

Cash sales are normally 20% of total sales and all credit sales are expected to be collected in the month following the date of sale. The total amount of cash expected to be received from customers in Sept is:

Multiple Choice

• $ 41,095.

• $ 57,680.

• $ 75,350.

• $ 69,790.

• $ 59,070.