TFS Corporation, a retail company selling hotel furniture, has just completed its master budget for the next fiscal year. Ending inventory is budgeted at 20% of cost of goods available for sale. Selected data from that process appear in the table below: Beginning inventory $10,000 Budgeted purchases 25,000 Expected revenue 150,000 Inflows of cash 120,000 Support departments’ costs 30,000 Total cash outflows 80,000 what is TFS’ budgeted cost of goods available for sale for the next fiscal year? Q2: ATR Corporation’s budgeted product costs for the third quarter of 20 x 2 were based on an expected volume of 1,500 units. The budgeted unit costs appear below: Direct material $1.50 Direct labour 2.25 Variable overhead 4.25 Fixed overhead 3.00 Total $11.00 If ATR had a budgeted volume of 2,000 units, what is the total budgeted product cost for the third quarter of 20 x 2? Q3: Jackson Company’s credit history indicates that 60 percent of revenue is collected in the quarter the sales occur, 35 percent in the quarter following the month of sales, and 5 percent in the quarter thereafter. Assume Jackson’s cash sales remain steady at $25,000 each quarter, credit sales are $600,000 in quarter 1, $520,000 in quarter 2, $480,000 in quarter 3, and $650,000 in quarter 4. What will Jackson’s cash collections from sales be for the quarter 3? Q4: Jackson Company’s payment policy is to pay 40 percent of its accounts payable in the quarter purchases are made and 60 percent in the following quarter. Assume Jackson’s credit purchases totaled $400,000 in quarter 1, $420,000 in quarter 2, $530,000 in quarter 3 and $580,000 in quarter 4. What will Jackson’s cash payments be for quarter 3? Q5: The Gretzky Company has budgeted the following sales for the 1st quarter of 2017: January $120,000 February $150,000 March $160,000 only 20% of the company’s sales are made in cash. The company expects to collect 30% of sales on account in the month of the sale, 60% in the month following the sale, and the final 10% will be collected two months following the sale. Bad debts are immaterial to the budget. What will be the total budgeted cash collections in March? Q6: The Tafoya Company has budgeted the following sales for the 1st quarter of 2017: January $80,000 February $70,000 March $90,000 All sales are made on account. The company expects to collect 40% of sales on account in the month of the sale, 50% in the month following the sale, and the final 10% two months following the sale. Bad debts are immaterial to the budget. What is the balance in accounts receivable at the end of March? Q7: The Crescent Company, a merchandising company, maintains a minimum cash balance of $25,000. Budgeted items for the 1st quarter of 2018 includes the following: Beginning cash balance $32,000 Cash collections $530,000 Selling and Administrative Costs $450,000 Dividend Payment $50,000 Equipment Purchase $90,000 Depreciation expense $10,000 In order to maintain the minimum cash balance, how much the company will need to borrow? Q8: Conner Company is a medium-sized toy distributor. Experience has shown that 30% of sales are collected within the month of sale, 60% is collected the month after the sale, and 10% is collected two months after the sale. Inventory on hand at the end of a month is to be 70% of the next month’s budgeted sales. Cost of goods sold is 50% of the selling price. Payment for purchases is made in the month after purchase. All other costs are paid in the month incurred. Budgeted amounts are as follows: March April May June July August Sales $10,000 $20,000 $30,000 $30,000 $50,000 $40,000 Costs: Wages 1,500 2,000 2,500 1,500 Rent 500 500 500 500 other 400 500 600 500 How much is the expected Cash receipts for the month of May?

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