Exam 7: Introduction to Budgets and Preparing the Master Budget

The operating-budget process results in the _____.

A budget that details the planned expenditures for facilities, equipment, new products, and other long?term investments

Haggle Corporation, a wholesaler, has a sales budget for next month of $400,000.Cost of units sold is expected to be 35% of sales.All units are paid for in the month following purchase.The beginning inventory of units is $10,000, and an ending amount of $12,000 is desired.Beginning accounts payable is $76,000. The cost of units sold for next month is expected to be _____.

Duck Company has the following information: Month Budgeted Purchases January 26,800 February 29,000 March 30,520 April 29,480 May 27,680 Purchases are paid for in the following manner: 10% in the month of purchase 50% in the month after purchase 40% two months after purchase _____ is the expected balance in Accounts Payable as of March 31.

Jaguars Corporation has the following information: Month Budgeted Sales May \ 46,000 June 50,000 July 52,000 August 48,000 The cost of goods sold percentage is 65% and the desired inventory level is 25% of next month's sales._____ is the expected total purchases budgeted for June.

Denver Manufacturing Company has the following information: Month Budgeted Sales Januaty \ 76,000 February 85,000 March 92,000 April 79,000 Budgeted Expenses per Month Wages \ 15,000 Advertising 12,000 Depreciation 3,000 Other 4\% of sales All cash expenses are paid as incurred._____ is the expected total expenses budgeted for the month of January.

_____ set the overall goals and objectives of the organization.

Denison Manufacturing Company has the following information: Month Budgeted Sales January \ 76,000 February 85,000 March 92,000 April 79,000 Budgeted Expenses per Month Wages \ 15,000 Advertising 12,000 Depreciation 3,000 Other 4\% of sales All cash expenses are paid as incurred._____ is the expected total cash disbursements for expenses in January.

The following sales budget has been prepared: Month Cash Sales Credit Sales September \ 167,000 \ 123,000 October 225,000 180,000 November 330,000 210,000 December 135,000 190,000 Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated._____ is the estimated cash collection in December.

Another name for continuous budget

Cheating may take the form of _____.:

This budget is needed for the sales budget, purchases budget, and cost-of-goods-sold budget

The major drawback of using historical results for judging current performance is that inefficiencies may be concealed in the past performance.

St.Louis Company's expected sales for April are $27,600.Information about other budgeted expenses is presented below. Budgeted Expenses per Month Wages \ 2,000 Advertising 1,680 Depreciation 1,440 Rent 2,560 Other 5\% of sales _____ is a noncash expense.

Budgetary slack helps buffer managers from budget cuts imposed by higher-level management and provides protection against cost increases or revenue shortfalls due to unforeseen events.

Dubuque Company has prepared the following sales budget: Month Cash Sales Credit Sales February \ 14,000 \ 28,000 March 12,800 29,200 April 10,800 26,400 Collections are 40% in the month of sale, 50% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated. Required: Prepare a schedule of cash collections for April.

If cash available plus net cash receipts minus disbursements is negative, then borrowing is necessary.

_____ are components of a master budget.

Budgets are generally more effective if they are _____.

The following sales budget has been prepared: Month Cash Sales Credit Sales September \ 99,000 \ 250,000 October 225,000 180,000 November 310,000 210,000 December 94,000 170,000 Collections are 50% in the month of sale, 40% in the month following the sale, and 10% two months following the sale.No uncollectible accounts are anticipated._____ is the expected balance of Accounts Receivable as of November 30.