BMAL 530 Quiz 4

BMAL 530 Quiz 4 Liberty University

BMAL 530 Quiz Budgeting and Pro-forma Financial Statements

1. Assume the following information for the month of August. June sales = $40,000; July sales = $65,000; August sales = $52,850. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. The beginning cash balance is $14,670, with cash payments of $24,653. If the minimum cash balance is $50,000, what is the amount needed by the bank, or how much is available to pay towards the bank loan? Show the amount needed as a positive number, and the amount to repay a loan as a negative number.
2. ABC Company has sales forecasts of the following: February = $40,000; March = $65,000. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. If the total cash receipts for March equal $48,250, what is the sales forecast for January?
3. ABC Company has sales forecasts of the following: January = $40,000; February = $65,000; March = $52,850. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. What are the cash receipts for March?
4. ABC Company pays for merchandise by paying cash and using credit. Credit purchases equal 80% of the purchases. Of those purchased on credit the purchases are paid for as follows: 60% in the current month, 35% in the month following, and 5% in the second month following. Assume January purchases are $65,000. How much of the January purchases are paid for in January?
5. ABC Company’s has December unit sales of 12,000 units. Assuming a 5% growth, what is the projected unit sales, in units?
6. ABC Company’s has December unit sales of 12,000 units. Assuming a 5% growth, and a selling price per unit of $40, what is the projected unit sales, in dollars?
7. ABC Company pays for merchandise entirely on credit as follows: 60% in the current month, 35% in the month following, and 5% in the second month following. Assume January purchases are $65,000. How much of the January purchases are paid for in January?
8. Assume the following information for the month of August. June sales = $40,000; July sales = $65,000; August sales = $52,850. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. The beginning cash balance is $14,670, with cash payments of $24,653. If the minimum cash balance is $40,000, what is the amount needed by the bank, or how much is available to pay towards the bank loan? Show the amount needed as a positive number, and the amount available to repay a loan as a negative number.
9. ABC Company projects the next period sales will be 12,000 units. ABC Company desires ending inventory equal to 20% of the next month’s sales. If the beginning inventory is 100, and the current month’s sales are 14,000, what is the number of units that will need to be purchased for the current month?
10. ABC Company projects the next period sales will be 12,000 units. ABC Company desires ending inventory equal to 20% of the next month’s sales. What is the desired inventory?

Set 2

1. ABC Company has sales forecasts of the following: January = $40,000; February = $65,000; March = $52,850. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% What are the cash receipts for March?
2. ABC Company has sales forecasts of the following: February = $40,000; March = $65,000. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% If the total cash receipts for March equal
3. ABC Company pays for merchandise entirely on credit as follows: 60% in the current month, 35% in the month following, and 5% in the second month Assume January purchases are $65,000. How much of the January purchases are paid for in January?
4. ABC Company’s has December unit sales of 12,000 Assuming a 5% growth, what is the projected unit sales, in units?
5. ABC Company pays for merchandise by paying cash and using Credit purchases equal 80% of the purchases. Of those purchased on credit the purchases are paid for as follows: 60% in the current month, 35% in the month following, and 5% in the second month following. Assume January purchases are $65,000. How much of the January purchases are paid for in January?
6. Assume the following information for the month of June sales = $40,000; July sales = $65,000; August sales = $52,850. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% The beginning cash balance is $14,670, with cash payments of $24,653. If the minimum cash balance is $40,000, what is the amount needed by the bank, or how much is available to pay towards the bank loan? Show the amount needed as a positive number, and the amount available to repay a loan as a negative number.
7. Assume the following information for the month of June sales = $40,000; July sales = $65,000; August sales = $52,850. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% The beginning cash balance is $14,670, with cash payments of $24,653. If the minimum cash balance is $50,000, what is the amount needed by the bank, or how much is available to pay towards the bank loan? Show the amount needed as a positive number, and the amount to repay a loan as a negative number.
8. ABC Company projects the next period sales will be 12,000 ABC Company desires ending inventory equal to 20% of the next month’s sales. What is the desired inventory?
9. ABC Company’s has December unit sales of 12,000 Assuming a 5% growth, and a selling price per unit of $40, what is the projected unit sales, in dollars?
10. ABC Company projects the next period sales will be 12,000 ABC Company desires ending inventory equal to 20% of the next month’s If the beginning inventory is 100, and the current month’s sales are 14,000, what is the number of units that will need to be purchased for the current month?