The following selected data pertain to Phineus Corporation: Cash operating expenses, July 1-31 $ 177,000 Depreciation 57,000
Question:
The following selected data pertain to Phineus Corporation:
Cash operating expenses, July 1-31 | $ 177,000 |
Depreciation | 57,000 |
Merchandise purchases in July | 557,000 |
Estimated payments in July for purchases in June | 217,000 |
Estimated payments in July for purchases prior to June | 47,000 |
Estimated payments in July for purchases in July | 35 % |
July's cash disbursements are expected to be:
$371,950.
$428,950.
$635,950.
$692,950.
Some other amount.
Digregory makes all purchases on account, subject to the following payment pattern:
Paid in the month of purchase: 25%
Paid in the first month following purchase: 55%
Paid in the second month following purchase: 20%
If purchases for January, February, and March were $194,000, $174,000, and $224,000, respectively, what were the firm's budgeted payments in March?
$56,000.
$123,200.
$151,700.
$190,500.
Some other amount.
Wolverine, Inc. began operations on January 1 of the current year with a $11,000 cash balance. 50% of sales are collected in the month of sale; 50% are collected in the month following sale. Similarly, 10% of purchases are paid in the month of purchase, and 90% are paid in the month following purchase. The following data apply to January and February:
January | February | |
Sales | $ 25,000 | $ 45,000 |
Purchases | 25,000 | 30,000 |
Operating expenses | 6,000 | 8,000 |
If operating expenses are paid in the month incurred and include monthly depreciation charges of $1,500, determine the change in Wolverine's cash balance during February.
$1,500 increase.
$3,000 increase.
$11,500 increase.
$13,000 increase.
Some other amount.
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan