5 TRUE FALS AND MULTIPLE CHOICE QUESTIONS, PLEASE HELP ASAP
Janeway, Inc. has a cash balance of$24,000on April 1. The company is now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows:
| Apr | May | Jun |
| Cash collections | $24,000 | $22,000 | $24,000 |
| Cash payments: |
| Purchases of direct materials | 5,000 | 4,000 | 7,000 |
| Operating expenses | 5,300 | 5,000 | 5,000 |
There are no budgeted capital expenditures or financing transactions during the quarter. Based on the above data, calculate the projected cash balance at the end of June.
When a company is preparing a budgeted statement of cash flows, the payments to suppliers for purchases of direct materials can be obtained from the ________.
Which of the following is true of the sales budget?
| It shows the cost of expected production in a period. |
| It is used in the production budget. |
| It captures the variable and fixed expenses of the business. |
| It provides sales data that is used to prepare financial statements for external reporting purposes. |
Which of the following statements regarding the capital expenditures budget is correct?
| The decision to purchase long-term assets is part of a strategic plan. |
| Capital expenditures are inexpensive assets. |
| Installment payments related to the purchase of long-term assets are included in the capital expenditures budget. |
| Capital expenditures are purchases of long-term assets, such as office supplies. |
The manufacturing overhead budget calculates the budgeted overhead cost for the year and also the predetermined overhead allocation rate for the year.
