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Information on the actual sales and inventory purchases of the Law Company for

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Information on the actual sales and inventory purchases of the Law Company for the first quarter follow;Inventory;Sales Purchases;January $120,000 $60,000;February $100,000 $78,000;March $130,000 $90,000;Collections from Law Company's customers are normally 60% in the month of sale, 30% in the month following sale, and 8% in the second month following sale. The balance is uncollectible. Law Company takes full advantage of the 3% discount allowed on purchases paid for by the end of the following month.;The company expects sales in April of $150,000 and inventory purchases of $100,000. Operating expenses for the month of April are expected to be $38,000, of which $15,000 is salaries and $8,000 is depreciation. The remaining operating expenses are variable with respect to the amount of sales in dollars. Those operating expenses requiring a cash outlay are paid for during the month incurred. Law Company's cash balance on March 1 was $43,000, and on April 1 was $35,000.;The expected cash collections from customers during April would be;a. $150,000.;b. $137,000.;c. $139,000.;d. $117,600.;Save Answer;22.;(Points: 1);The expected cash disbursements during April for inventory purchases would be;a. $100,000.;b. $97,000.;c. $90,000.;d. $87,300.;Save Answer;23.;(Points: 1);The expected cash disbursements during April for operating expenses would be;a. $38,000.;b. $30,000.;c. $23,000.;d. $15,000.;Save Answer;24.;(Points: 1);The expected cash balance on April 30 would be;a. $54,700.;b. $62,700.;c. $19,700.;d. $28,700.;Save Answer;25.;(Points: 1);Which department is usually held responsible for an unfavorable materials quantity variance?;a. Marketing;b. Purchasing;c. Engineering;d. Production;Save Answer

 

Paper#26213 | Written in 18-Jul-2015

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