25) The single most important output from preparing financial budgets is the A) determination of the unit cost of the product. B) cash budget. C) sales forecast. D) budgeted income statement. 26) The following information was taken from Southgate Industry's cash budget for the month of July: Beginning cash balance Cash receipts Cash disbursements $480,000 304,000 544,000 If the company's policy is to maintain a minimum end of the month cash balance of $400,000, the amount the company would have to borrow in July is A) $96,000. B) $160,000. C) $240,000. 25) 26) D) $80,000. 27) 27) The starting point for preparing the master budget is the preparation of the A) sales budget. C) personnel budget. B) production budget. D) purchasing budget. 28) Bear, Inc. estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units for each subsequent quarter during the year. The company has, and desires, an ending finished goods inventory equal to 25% of the next quarter's sales. Each unit sells for $35. Forty percent of sales are for cash. Seventy percent of credit customers pay within the quarter. The remainder is collected in the quarter following sale. Cash collections for the third quarter are budgeted at A) $4,746,000. B) $9,576,000. C) $6,888,000. D) $8,274,000. 29) Which of the following statements about a budgeted income statement is not true? A) The budgeted income statement is prepared on the accrual basis of accounting. B) The budgeted income statement can be prepared in a multiple-step format. C) The budgeted income statement is prepared after the financial budgets are prepared. D) The budgeted income statement is prepared using the individual operating budgets. 28) B-5 29) -