FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: Planning for Profit and Cost Control

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Valley Farm Supply started the period with $80,000 cash.Cash receipts for January expected to total $350,000.Cash disbursements for January were expected to be $290,000.What is the expected cash balance at the end of January?

A) $290,000
B) $350,000
C) $80,000
D) $140,000

E) All of the above
F) None of the above

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Planning concerned with long-range decisions such as defining the scope of the business is referred to as:

A) operations budgeting.
B) master planning.
C) capital budgeting.
D) strategic planning.

E) C) and D)
F) A) and B)

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Which of the following cash budget equations is incorrect?

Which of the following is a

Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first quarter of Year 2: $\begin{array}{|l|l|r|r|r|}\hline& \text { Dec. Year } 1 &\text { Jan. Year } 2 &\text { Feb. Year } 2 & \text { Mar. Year } 2 \\\hline & \text { (Actual) } & \text { (Budgeted) }& \text { (Budgeted) }& \text { (Budgeted) } \\\hline \text {Cost of goods sold } &\$ 80,000 & \$ 140,000 & \$ 180,000 & \$ 120,000 \\\hline\end{array}$ Desired ending inventory levels are 25% of the following month's projected cost of goods sold.Budgeted purchases of inventory in February Year 2 would be:

The master budget details:

Select the correct statement about budgeting and human behavior.

Which of the following is generally included in a sales budget?

Which of the following is not considered a pro forma financial statement?

Although only 20 units are on hand at the beginning of the year,World Company plans to sell 100 units during Year 2.Assuming the company desires an ending inventory of 10 units,it should plan to purchase 110 units.

How might a company develop sales estimates to be used in preparing a sales budget?

Bantam Industries has budgeted the following information for March: $\begin{array}{|l|r|}\hline \text { Cash receipts }& \$ \quad 271,000\\\hline \text { Beginning cash balance } & 5,000 \\\hline \text { Cash payments } & 280,000 \\\hline \text { Desire dending cash balance } & 25,000\\\hline\end{array}$ If there is a cash shortage,the company borrows money from the bank.All cash is borrowed at the beginning of the month in $1,000 increments and interest is paid monthly at 1% on the first day of the following month.The company had no debt before March 1^st.How much cash will the company need to borrowed in March?

A management accountant was working on a cash budget for Oklahoma Company when he accidentally spilled his coffee.Some of the liquid splattered on his working papers rendering a few of the amounts illegible.The budget with missing amounts indicated is provided below : CHANGE NEEDS TO BE MADE TO TABLE Remove the ",2014" from the heading The company desires a cash cushion of $7,500 to start each month.In any month in which there is cash shortage the company's bank will extend it a loan equal to the shortage amount.The loan is assumed to have been made on the last day of the month.Any time the company has a cash surplus it must repay as much of any outstanding loans as possible.The bank charges monthly interest of 1% on any outstanding loan balance. Required: Compute the missing amounts and enter them in the following table: $\begin{array}{|l|l|l|l|}\hline(\mathrm{a}) & \quad\quad \quad & (\mathrm{i}) & \quad\quad\quad \\\hline \text { (b) } && (j) & \\\hline \text { (c) } & & (\mathrm{k}) & \\\hline \text { (d) } & & (\mathrm{l}) & \\\hline \text { (e) } & & (\mathrm{m}) & \\\hline \text { (f) } & & (\mathrm{n}) & \\\hline(\mathrm{g}) && (\mathrm{o}) & \\\hline(\mathrm{h}) & & (\mathrm{p}) & \\\hline\end{array}$

The responsibility for the coordination of a company's budgeting activities normally rests with the Chief Financial Officer (CFO).

Budgeted depreciation expense would not appear on a:

The budget director of Mandy's Kitchen Shop has prepared the following sales budget.The company had $50,000 of accounts receivable at January 1.The company normally collects 100 percent of its accounts receivable in the month following the sale. Required: (a)Complete the schedule of cash receipts by filling in the missing amounts.What are the total budgeted cash receipts for the first quarter. (b)Determine the amount of accounts receivable that Mandy's should report on the first quarter pro forma balance sheet.

One company's practice is to provide bonuses to salespeople who exceed their sales targets.Which of the following advantages of budgeting enables the company to establish its recognition program?

What would be the required purchases (on account) for December?

The three major components of the master budget are the financial budgets,the capital budgets,and the pro forma financial statements.

How much will the cash payments for purchases be in December?