Exam 10: Static and Flexible Budgets

(Appendix 10A)To address the difference between budgeted cash receipts and budgeted cash disbursements, managers also budget which of the following?

The actual preparation of a budget usually begins with the:

(Appendix 10A)On October 31, a firm analyzed the balance in its account receivables as follows: Month of Sale Receivables Balance 10/31 October $40,000 September 24,000 August 20,000 July 5,000 The firm's typical collection pattern is as follows: Cash sales 25% Credit sales: Month of sale 20 One month following 35 Two months following 15 Uncollectible (written off three months following)5 Total 100% What were the original sales for September?

TNR Corporation is preparing its budgeted income statement for the month of August. Budgeted sales are $18,000. Cost of goods sold is twice the amount of operating costs, and operating costs plus cost of goods sold equals 40% of net income. Return on sales (net income / sales)is anticipated to be 50%. TNR does not have any nonoperating items on its income statement. TNR's budgeted operating costs are: