chapter 7 tough questions Flashcards
Difficulty Lvl: Insane
A company has the following budget information: Sales: $118,800; COGS: $48,500; Depreciation expense: $1,500; Interest expense: $250; Other expenses: $41,880. If the company budgets 40% for income tax expense, the amount of budgeted income tax expense will be $
$10,668
Initial Difficulty Lvl: Insane
Comeback here; Tip; ADD the items that fall under the selling expense budget category.
A merchandising company’s budget includes the following data for January: Sales: $400,000; COGS: $270,000; Administrative salaries: $1,250; Sales commissions: 5% of sales; Advertising: $10,000; Salary for sales manager: $30,000; Miscellaneous administrative expenses: $5,000. The total selling expenses on the January selling expense budget will be $
$60,000
the selling expense budget consist of
commissions, salary, advertising, and delivery expenses.
the budget which shows predicted amounts of the company’s assets, liabilities, and equity as of the end of the budget period is the:
budgeted balance sheet
what is the formula used to compute the units to purchase in a merchandise purchases budget?
units to purchase = budgeted sales units + desired ending merchandise inventory units - beginning merchandise inventory units
Difficulty Lvl: Insane
A manufacturing company’s sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. The company expects 70% of the sales to be on credit and the remainder to be cash sales. Credit sales are collected in the month following the sale. The total cash collected during March will be $
$31,500
Difficulty Lvl: Insane; READ CAREFUL LOOKS SIMILAR but asking for diff variable
A company has the following budget information: Sales: $118,800; COGS: $48,500; Depreciation expense: $1,500; Interest expense: $250; Other expenses: $41,880. If the company budgets 40% for income tax expense, the budgeted net income will be $
$16,002
Difficulty: Easy Peasy
A merchandising company’s sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. Sales personnel are paid a salary plus commission. Salaries are expected to be $5,000 per month and the commission is 10% of sales. Additionally, advertising is expected to be $600 per month. The total selling expenses for the quarter will be $
$25,800
Difficulty Lvl: Scary, Solved it first try though.
A manufacturing company’s sales budget indicates the following sales: January: $30,000; February: $20,000; March: $15,000. The company expects 80% of the sales to be on credit. Credit sales are collected 30% in the month of the sale and 70% in the month following the sale. The total cash receipts collected during March will be $
$17,800
A company has the following budget information: Sales: $118,800; COGS: $48,500; Depreciation expense: $1,500; Interest expense: $250; Other expenses: $41,880. If the company budgets 40% for income tax expense, the amount of budgeted income tax expense will be $
Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.
Beginning cash balance on June 1, $95,300.
Cash receipts from sales, $419,500.
Budgeted cash payments for purchases, $274,500.
Budgeted cash payments for salaries, $96,300.
Other budgeted cash expenses, $58,300.
Cash repayment of bank loan, $33,300.
Budgeted depreciation expense, $35,300.
Multiple Choice
$85,700.
$110,700.
$17,100.
$52,400.
$75,400.
52,400$ : Depreciation expense is non-cash and as such is not included in the cash budget
