8 The five primary purposes of a budget are: Choose one answer. a. planning, all
ID: 2458970 • Letter: 8
Question
8
The five primary purposes of a budget are:
Choose one answer.
a.
planning, allocating resources, facilitating communication and coordination, evaluating competition, controlling profit and operations and allocating fixed costs.
b.
planning, allocating resources, facilitating communication and coordination, controlling profit and operations, and allocating fixed costs.
c.
planning,
allocating resources, facilitating communication and coordination, controlling
profit and operations, and evaluating competition.
d.
planning, allocating resources, controlling profit and operations, providing incentives, evaluating performance, and allocating fixed costs.
e.
planning, allocating resources, facilitating communication and coordination, controlling profit and operations, evaluating performance and providing incentives.
9
CompuData owns a chain of five shops selling computer goods. In the past the company maintained a healthy cash balance. However, this has fallen in recent months, and at the end of May 2014 it had an overdraft of $100,000. In view of this, CompuData’s managing director has asked you to prepare a cash forecast for the next six months. You have collected the following information:
June
$000s
July
$000s
August
$000s
September
$000s
October
$000s
November
$000s
Cash sales (cash collections)
250
200
250
350
200
80
Cash purchases
180
160
130
40
50
60
Wages and salaries
40
40
50
40
40
45
Rent
80
Rates
60
Other expenses
25
25
25
25
25
25
Refurbishing shops
80
Total cash disbursements
245
225
285
185
115
190
Referring to the table above. The projected cash balance for the end of June is:
Choose one answer.
a.
$(245,000)
b.
$70,000
c.
($5,000)
d.
$6,000
e.
$(95,000)
10
Wodonga Company collects 20 per cent of a month’s sales revenue in the month of sale, 70 per cent in the month following sale, and 6 per cent in the second month following sale. The remainder is uncollectible. The budgeted sales revenue for the next four months is:
January
February
March
April
Budgeted sales revenue
$200,000
$300,000
$350,000
$250,000
Cash collections in April are budgeted to be:
Answer:
Unit
Number
a.
planning, allocating resources, facilitating communication and coordination, evaluating competition, controlling profit and operations and allocating fixed costs.
b.
planning, allocating resources, facilitating communication and coordination, controlling profit and operations, and allocating fixed costs.
c.
planning,
allocating resources, facilitating communication and coordination, controlling
profit and operations, and evaluating competition.
d.
planning, allocating resources, controlling profit and operations, providing incentives, evaluating performance, and allocating fixed costs.
e.
planning, allocating resources, facilitating communication and coordination, controlling profit and operations, evaluating performance and providing incentives.
Explanation / Answer
8)
The last part of the options are not clearly visible, but the correct option is option E that is:
planning, allocating resources, facilitating communication and coordination, controlling profit and operations, evaluating performance and providing
9)
The projected cash balance at the end of June will be:
= Cash Sales - Total cash disbursements - Overdraft
= $ 250,000 - $ 245,000 - $ 100,000
= $ (95,000)
So, option E is the correct option.
10)
Cash collections of April
= 20% of April + 70% of March + 6% of February
= 20% of $ 250,000 + 70% of $ 350,000 + 6% of $ 300,000
= $ 313,000.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.