# Accounting

1) Delleate Inc. has prepared the following purchases budget:

onth Budgeted Purchase

une \$67,00

ul 72,5

u st 76,3

e tember 73,70

ctober 69,2

All purchases are paid for as follows: l0% in the month of purchase, 50% in the following month, and

40%two months after purchase. Calculate balance of Accounts payable at the end of October.

A) \$77,680

B) \$91,760

C) \$69,330

D) \$74,290

2) Junk Fries has budgeted sales for June and July at \$680,000 and \$720,000, respectively. Sales are 80%

credit, of which 70% is collected in the month of sale and 30% is collected in the following month. What is

the accounts receivable balance on July 31?

A) \$200,500

B) \$172,800

C) \$158,200

D) \$225,320

3) Dry Fruit Grocers a local grocer has budgeted inventory purchases as follows:

October: \$300,000

November: \$350,000

December: \$390,000

Dry Fruit Grocers pays for 20% of their purchases during the month of purchase, 70%during the month

following the purchase, and the remaining 10% two months after the month of purchase. What is the

budgeted accounts payable balance on December 31?

A) \$312,000

B) \$347,000

C) \$390,000

D) \$425,000

4) A manufacturing company’s budgeted income statement includes the following data:

ata extracted from budgeted

‘ncome statement Mar A r May Jun

ales \$120,00 \$90,00 \$45,J0 \$100,00

Commission ex erase (15% of sales) 18,00 13,5 14,25 15,0

alaries ex erase 30,0 30,0 30,00 30,00

iscellaneous ex erase-4% of sales 4,80 3,60 3,80 4,00

ent ex erase 3,60 3,60 3,60 3,60

tili ex erase 1,90 1,90 1,90 1,90

surance ex erase 2,10 2,10 2,10 2,10

e reciation ex erase 4,40 4,40 4,40 4,40

The budget assumes that 60% of commission expenses are paid in the month they are incurred and the

remaining 40% are paid one month later. In addition, 50% of salary expenses are paid in the same month

and the remaining 50%are paid one month later. Miscellaneous expenses, rent expense and utility

expenses are assumed to be paid in the same month in which they are incurred. Insurance has been paid

in advance for the year on January 1st,

Calculate total budgeted cash payments for selling and administrative expenses for the month of April.

A) \$54,200 B) \$53,250

C) \$54,400 D) \$53,900

5) A manufacturing company’s budgeted income statement includes the following data:

Data extracted from budgeted

income statement Mar A r Ma Jun

ales \$120,00 \$90,00 \$95,00 \$100,00

Commission ex ense (15% of sales) 18,0 13,50 14,25 15,0

alaries ex erase 30,0 30,00 30,00 30,00

iscellaneous ex erase-4% of sales 4,80 3,60 3,80 4,00

ent ex erase 3,60 3,60 3,60 3,60

tili ex erase 1,90 1,90 1,90 1,90

surance ex erase 2,10 2,10 2,10 2,10

e reciation ex erase 4,40 4,40 4,40 4,40

The budgefi assumes that 60% of commission expenses are paid in the month they were incurred and the

remaining 40%are paid one month later. In addition, 50% of salary expenses are paid in the month

incurred and the remaining 50%are paid one month later. Miscellaneous expenses, rent expense and

utility expenses are assumed to be paid in the same month in which they are incurred. Insurance was

prepaid for the year on January 1.

How much is the total of the budgeted cash payments for selling and administrative expenses for the

month of May?

A) \$54,200

B) \$53,250

C) \$54,400

D) \$53,900

6) Diemans Corp. has provided a part of its budgefi for the 2nd quarter:

A r Ma June

Cash collections \$40,00 \$45,00 \$52,00

Cash a ments:

urchases of invento 4,50 7,20 4,50

eratin ex erases 7,90 5,60 9,00

Ca ital ex enditures 20,00 4,6U

The cash balance on April 1 is \$12,000. Assume that there will be no financing transactions or costs during

the quarter. Calculate the cash balance at the end of April.

A) \$50,000

B) \$40,200

C) \$39,600

D) \$51,800

7) Diemans Corp. has provided a part of its budget for the 2nd quarter:

A r Ma June

ash collections \$40,00 \$45,00 \$52,00_…_ Cash a ents•

urchases of invento 4,50 7,20 4,50

O eratin ex enses 7,90 5,60 9,00

a ital ex enditures 20,00 4,60

T’he cash balance on Apri11 is \$12,000. Assume that there will be no financing transactions or costs during

the quarter. Calculate the cash balance at the end of May.

A) \$51,800

B) \$40,800

C) \$33,900

D) \$21,800

8) Diemans Corp .has provided a part of its budget for the 2nd quarter:

A r Ma June

ash collections \$40,00 \$45,00 \$52,00

Cash a ents:

urchases of invento 4,50 7,20 4,50

O eratin ex enses 7,90 5,60 9,00

Ca ital ex enditures 20,00 4,60

T’he cash balance on Apri11 is \$12,000. Assume that there will be no financing transactions or costs during

the quarter. Calculate the cash balance at the end of June.

A) \$26,500

B) \$40,800

C) \$85,700

D) \$21,800

9) Nobell Inc. has a cash balance of \$20,000 on April 1, 2015. They are now preparing the cash budget for

the second quarter. Budgeted cash collections and payments are as follows:

A r Ma June

ash collections \$25,00 \$22,00 \$20,00

ash a ments:

urchases of invento 5,80 7,00 6,20

O eratin ex enses 3,50 4,60 5,30

There are no budgeted capital expenditures,or financing transactions during the quarter. Based on the

above data, calculate the projected cash balance at the end of April.

A) \$22,000

B) \$35,700

C) \$23,700 D) \$22,400

10) Nobell Inc. has a cash balance of \$20,000 on Apri11, 2015. They are now preparing the cash budget for

the second quarter. Budgeted cash collections and payments are as follows:

A r May June

Cash collections \$25,00 \$22,00 \$20,00

ash a ments:

urchases of invento 5,80 7,00 6,20

O eratin ex enses 3,50 4,60 5,30

There are no budgeted capital expenditures or financing transactions during the quarter. Based on the

above data, calculate the projected cash balance at the end of May.

A) \$22,000

B) \$21,900

C) \$23,700 D) \$46,100

11) Nobell Inc. has a cash balance of \$20,000 on April 1, 2015. They are now preparing the cash budget for

the second quarter. Budgeted cash collections and payments are as follows:

A r Ma June

ash collections \$25,00 \$22,00 \$20,00

Cash a ments•

urchases of inventor 5,80 7,00 6,20

O eratin ex erases 3,50 4,60 5,30

There are no budgeted capital expenditures or financing transactions during the quarter. Based on the

above data, calculate the projected cash balance at the end of June.

A) \$35,700

B) \$21,900

C) \$46,100

D) \$54,600

12) Fulkron Manufacturing provides the following data excerpted from its 3rd quarter budget:

Jul Au Se

ash collections \$66,00 \$42,00 \$45,00

Cash a ents:

urchases of invento 50,00 48,0 25,00

O eratin ex erases 10,0 15,0 20,00

a ital ex enditures 32,0 6,00

The cash balance on June 30 is projected to be \$10,000. Based on the above data, calculate the shortfall the

company is projected to have at the end of August.

A) \$32,000

B) \$43,000

C) \$37,000

D) \$16,000

13) Fulkron Manufacturing provides the following data excerpted from its 3rd quarter budget:

jul Au Sep

Cash collections \$66,00 \$42,00 \$45,00

Cash a ents•

urchases of invento 50,00 48,0 25,0

O eratin ex erases 10,00 15,0 20,00

Ca ital e enditures 32,00 6,00

The cash balance on June 30 is projected to be \$10,000. Based on the above data, calculate the shortfall the

company is projected to have at the end of September.

A) \$43,000

B) \$28,000

C) \$35,000 D) \$40,000

14) A3+has prepared its 3rd quarter budget and provided the following data:

jul Aug Se

ash collections \$50,00 \$40,00 \$48,00

ash a ents:

urchases of inventor 31,00 22,00 18,00

eratin ex erases 12,00 9,00 11,60

Ca ital ex enditures 13,00 25,00

T’he cash balance on June 30 is projected to be \$4,000. The company has to maintain a minimum cash

balance of \$5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may

borrow in increments of \$5,000 and has to pay interest every month at an annual rate of 5%. All financing

transactions are assumed to take place at the end of the month. The loan balance should be repaid in

increments of \$5,000 whenever there is surplus cash.

How much will the company have to borrow at the end of July?

A) \$0 B) \$5,000

C) \$15,000

D) \$10,000

15) A3+has prepared its 3rd quarter budget and provided the following data:

jul Au Se

ash collections \$50,00 \$40,00 \$48,00

Cash a ments:

urchases of inventor 31,0 22,00 18,00

eratin ex enses 12,0 9,00 11,60

a ital ex enditures 13,00 25,0

The cash balance on June 30 is projected to be \$4,000. The company has to maintain a minimum cash

balance of \$5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may

borrow in increments of \$5,000 and has to pay interest every month at an annual rate of 5%. All financing

transactions are assumed to take place at the end of the month. The loan balance should be repaid in

increments of \$5,000 whenever there is surplus cash.

How much will the company have to borrow at the end of August?

A) \$15,000

B) \$5,000

C) \$10,000

D) \$20,000

16) A3+has prepared its 3rd quarter budget and provided the following data:

rul Au Sep

ash collections \$50,~ \$40,00 \$48,00

ash a ments:

urchases of inventor 31,0 22,00 18,00

O eratin ex enses 12,00 9,00 11,60

Ca ital ex enditures 13,00 25,00

The cash balance on June 30 is projected to be \$4,000. The company has to maintain a minimum cash

balance of \$5,000 and is authorized to borrow at the end of each month to makeup any shortfalls. It may

borrow in increments of \$5,000 and has to pay interest every month at an annual rate of 5%. All financing

transactions are assumed to take place at the end of the month. The loan balance should be repaid in

increments of \$5,000 whenever there is surplus cash. Calculate the ending cash balance before financing

for August.

A) \$9,000

B) \$5,000

C) \$3,000

D) (\$8,000)

17) A3+has prepared its 3rd quarter budget and provided the following data:

jul Au Se

Cash collections \$50,00 \$40,00 \$48,00

Cash a ments:

urchases of invento 31,00 22,00 18,00

O eratin ex erases 12,0 9,00 11,60

a ital ex enditures 13,0 25,0

The cash balance on June 30 is projected to be \$4,000. T’he company has to maintain a minimum cash

balance of \$5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may

borrow in increments of \$5,000 and has to pay interest every month at an annual rate of 5%. All financing

transactions are assumed to take place at the end of the month. T’he loan balance should be repaid in

increments of \$5,000 whenever there is surplus cash. Calculate the final cash balance at the end of August

taking into consideration all the financing transactions.

A) \$6,958

B) \$5,254

C) \$7,100

D) \$4,320

18) A3+has prepared its 3rd quarter budget and provided the following data:

jul Au Se

ash collections \$50,00 \$40,00 \$48,00

Cash a ments:

urchases of invento 31,0 22,00 18,0

O eratin ex erases 1~,0 9,00 11,60

a ital ex enditures 13,00 25,0

The cash balance on June 30 is projected to be \$4,000. The company has to maintain a minimum cash

balance of \$5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may

borrow in increments of \$5,000 and has to pay interest every month at an annual rate of 5%. All financing

transactions are assumed to take place at the end of the month. The loan balance should be repaid in

increments of \$5,000 whenever there is surplus cash. Calculate the amount of principal repayment at the

end of September.

A) \$5,000

B) \$10,000

C) \$15,000

D) \$20,000

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