22) Be 21) 8C 21) Fasthound Express prepared the following sales budget: Month M

Question

22)

Be 21) 8C 21) Fasthound Express prepared the following sales budget: Month March April May June Cash Sales $10,000 $20,000 $30,000 $40,000 Credit sales $20,000 30,000 $40,000 $50,000 Credit collections are 50% in the month of sale, 40% in the month following the sale, and monthsfollowingthe sale. The remaining 5% is expected to be uncollectible. What is the total cash received in April from April sales? S$0,000 D) 543000 A) $35,000 B) $23,000 D) $43,000 22) Della Company prepared the following purchases budget: 22) Month June uly Augus Se Budgeted Purchases $67,000 $72,500 $76,300 $73,700 $69,200 ber All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month and 40% two months after purchase. What are the total cash disbursements in August for the purchase of merchandise? A) $76,300 B) $72,500 C) $70,680 D) $73,850 23) Della Company prepared the following purchases budget: 23) Month June July August September October Budgeted Purchases $67,000 $72,500 $76,300 $73,700 $69,200 All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. What are the total cash disbursements in October for the purchase of merchandise? A) $69,200 B) $64,080 C) $34,600 D) $74,290

Explanation / Answer

21.) CASH RECEIVED IN APRIL AND FROM APRIL SALES .

CASH SALES OF APRIL + 50% OF CREDIT SALES OF APRIL + 40% OF CREDIT SALES OF MARCH SALES

($20000+($30000*50%)+($20000*40%)= $20000+$15000 $43000

OPTION D IS CORRECT ANSWER

22.) CASH DISBURSEMENT IN AUGUST FOR MERCHANDISE .

10% OF AUGUST PURCHASE +50% OF JULY PURCHASE +40% OF JUNE PURCHASE

($76300*10%)+($72500*50%)+(67000*40%)= $7630+$36250+$26800= $70680

THE CORRECT OPTION IS C.

23.) CASH DISBURSEMENT IN OCTOBER FOR THE PURCHASE OF MERCHANDISE

10% PURCHASE OF OCTOBER+ 50% PURCHASE SEPTEMBER + 40% PURCHASE OF AUGUST

(69200$*10%)+($73700*50%)+($76300*40%)=$6920+$36850+$30520= $74290

THE CORRECT OPTION IS D.

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