Posted: April 21st, 2016

How much will Francis Manufacturing need to borrow to meet its cash needs for the month?

Rogers Corporation is preparing its cash budget for July. The budgeted beginning cash balance is $25,000. Budgeted cash receipts total $141,000 and budgeted cash disbursements total $139,000. The desired ending cash balance is $30,000.

The excess (deficiency) of cash available over disbursements for July is:
A) $23,000
B) $2,000
C) $166,000
D) $27,000
Information on the actual sales and inventory purchases of the Law Company for the first quarter follow:

Collections from Law Company s customers are normally 60% in the month of sale, 30% in the month following sale, and 8% in the second month following sale. The balance is uncollectible. Law Company takes full advantage of the 3% discount allowed on purchases paid for by the end of the following month.
The company expects sales in April of $150,000 and inventory purchases of $100,000. Selling and administrative expenses for the month of April are expected to be $38,000, of which $15,000 is salaries and $8,000 is depreciation. The remaining selling and administrative expenses are variable with respect to the amount of sales in dollars. Those selling and administrative expenses requiring a cash outlay are paid for during the month incurred. Law Company s cash balance on March 1 was $43,000, and on April 1 was $35,000.

The expected cash disbursements during April for selling and administrative expenses would be:
A) $38,000
B) $30,000
C) $23,000
D) $15,000

Traverse Company manufactures and sells women s skirts. Each skirt (unit) requires 2.5 yards of cloth. Selected data from Traverse s master budget for next quarter are shown below:

Each unit requires 1.5 hours of direct labor, and the average hourly cost of Traverse s direct labor is $10. What is the cost of Traverse Company s direct labor in September?
A) $135,000
B) $180,000
C) $157,500
D) $120,000
Francis Manufacturing Company is currently preparing its cash budget for next month and has gathered the following information:

The beginning cash balance will be $6,000 and the company requires a minimum cash balance at the end of the month of $5,000. How much will Francis Manufacturing need to borrow to meet its cash needs for the month?
A) $9,100
B) $14,100
C) $20,100
D) None of the above.

On January 1, Barnes Company has 8,000 units o

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