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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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