Scribd Logo
Upload

Welcome to Scribd!

  • 532 views

    Sol Q5

    Uploaded by

    Shubham Ranka
    The document contains 10 multiple choice questions related to business concepts like sales forecasting, production planning, budgeting, and cash flow. The questions provide financial and production data for various companies and ask the reader to calculate values like revenue, production needs, expenses, cash balances based on the information given. Correct answers are then provided as letter choices for each question.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Sol Q5

    Uploaded by

    Shubham Ranka
    532 views3 pages
    The document contains 10 multiple choice questions related to business concepts like sales forecasting, production planning, budgeting, and cash flow. The questions provide financial and production data for various companies and ask the reader to calculate values like revenue, production needs, expenses, cash balances based on the information given. Correct answers are then provided as letter choices for each question.

    Original Title

    sol-Q5.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains 10 multiple choice questions related to business concepts like sales forecasting, production planning, budgeting, and cash flow. The questions provide financial and production data for various companies and ask the reader to calculate values like revenue, production needs, expenses, cash balances based on the information given. Correct answers are then provided as letter choices for each question.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    532 views3 pages

    Sol Q5

    Uploaded by

    Shubham Ranka
    The document contains 10 multiple choice questions related to business concepts like sales forecasting, production planning, budgeting, and cash flow. The questions provide financial and production data for various companies and ask the reader to calculate values like revenue, production needs, expenses, cash balances based on the information given. Correct answers are then provided as letter choices for each question.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    ............................

    -
    ........................................................
    5 (1/58)

    1. Bird plans to sell 5,000 units each quarter next year. During the first two quarters each unit will sell for
    $12; during the last two quarters the sales price will increase $1.50 per unit. What is Bird's estimated
    sales revenue for next year?
    A. $240,000.
    B. $255,000.
    C. $270,000.
    D. $244,000.

    2. Swansong plans to sell 10,000 units of a particular product during July, and expects sales to increase at
    the rate of 10% per month during the remainder of the year. The June 30 and September 30 ending
    inventories are anticipated to be 1,100 units and 950 units, respectively. On the basis of this
    information, how many units should Swansong purchase for the quarter ended September 30?
    A. 31,850.
    B. 32,150.
    C. 32,950.
    D. 33,250.

    3. Yorkley Corporation plans to sell 41,000 units of its single product in March. The company has 2,800
    units in its March 1 finished-goods inventory and anticipates having 2,400 completed units in inventory
    on March 31. On the basis of this information, how many units does Yorkley plan to produce during
    March?
    A. 40,600.
    B. 41,400.
    C. 43,800.
    D. 46,200.

    4. Tidewater plans to sell 85,000 units of product no. 794 in May, and each of these units requires three
    units of raw material. Pertinent data follow.

    On the basis of the information presented, how many units of raw material should Tidewater purchase
    for use in May production?
    A. 228,000.
    B. 246,000.
    C. 264,000.
    D. 282,000.

    5. Northwest's production data for one of its products were taken from the most recent quarterly
    production budget:

    If it takes two direct labor hours to produce each unit and Northwest's cost per labor hour is $15,
    direct labor cost for August would be budgeted at:
    A. $16,500.
    B. $31,200.
    C. $33,000.
    D. $34,800.

    6. Quattro began operations in April of this year. It makes all sales on account, subject to the following
    collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after
    sale; and 10% are collected in the second month after sale. If sales for April, May, and June were
    $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections for May?
    A. $21,000.
    B. $60,000.
    C. $69,000.
    D. $75,000.

    7. The following selected data pertain to Phineus Corporation:

    July's cash disbursements are expected to be:


    A. $404,000.
    B. $464,000.
    C. $674,000.
    D. $734,000.

    8. Digregory makes all purchases on account, subject to the following payment pattern:
    Paid in the month of purchase: 30%
    Paid in the first month following purchase: 60%
    Paid in the second month following purchase: 10%
    If purchases for January, February, and March were $200,000, $180,000, and $230,000, respectively,
    what were the firm's budgeted payments in March?
    A. $69,000.
    B. $138,000.
    C. $177,000.
    D. $197,000.

    9. The Gingham Company's budgeted income statement reflects the following amounts:

    Sales are collected 50% in the month of sale, 30% in the month following sale, and 19% in the second
    month following sale. One percent of sales is uncollectible and expensed at the end of the year.
    Gingham pays for all purchases in the month following purchase and takes advantage of a 3%
    discount. The following balances are as of January 1:

    *Of this balance, $35,000 will be collected in January and the remaining amount will be collected in
    February.
    The monthly expense figures include $5,000 of depreciation. The expenses are paid in the month
    incurred.
    Gingham's budgeted cash payments in February are:
    A. $75,660.
    B. $94,860.
    C. $97,200.
    D. $99,860.

    10. Refer to The Gingham Company's information in Question 9. Gingham's expected cash balance at the
    end of February is:
    A. $87,000
    B. $92,000
    C. $94,160
    D. $113,300.

    You might also like