Section A: Multiple Choices Question (Total 10 marks, 2 marks each) Choose the BEST answer and write all answers on the answer book provided. Use the following information to answer question 1-3. The Lowville Company has budgeted the following data for November: Sales of $1,728,300, all in cash. A cash balance on November 1 of $72,000. Cash disbursements (other than interest) during November of $1,740,000. A minimum cash balance of $90,000 at the end of each month. The company has 2% open line of credit for $100,000. All borrowing will take place at the beginning of the month. The November interest will be paid in cash when repayment is made. 1. The excess (deficiency) of cash available over disbursements for November will be: A. $(11,700) B. $ (29,700) C. $60,300 D. $72,000 2. The amount of cash needed to be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance is: A. $11,700 B. $18,000 C. $29,700 D. $30,000 3. The minimum cash balance the Lowville Company should have in order to make both repayment and interest payment in December should be closest to: A. $18,060 B. $29,800 C. $90,600 D. $119,800 Use the following information to answer question 4-5. Operating data of Peter Company for last year follows: Sales Stockholders' equity Return on investment Turnover Minimum required rate of return Total assets $900,000 $500,000 12% 1.5 10% $800,000 4. The average operating assets amounted to: A. $400,000 B. $500,000 C. $600,000 D. $800,000 5. The residual income amounted to: A. $10,000 B. $12,000 C. $18,000 D. $16,000