In: Accounting
49.
Assume a merchandising company’s estimated sales for January, February, and March are $112,000, $132,000, and $122,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 30% of next month’s cost of goods sold. It pays for 20% of its merchandise purchases in the month of the purchase and the remaining 80% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the company’s cash budget for February?
Multiple Choice
$69,120
$74,120
$75,120
$72,120
50.
Assume the following information:
Amount | ||||
Selling price | $ | 30 | ||
Variable expense per unit | $ | 12 | ||
Fixed expenses | $ | 12,500 | per month | |
Unit sales | 2,090 | per month | ||
What is the net operating income per month?
Multiple Choice
$25,120
$12,620
$25,080
$22,990
51.
Assume the following information:
Amount | Per Unit | |||||||||
Sales | $ | 300,000 | $ | 40 | ||||||
Variable expenses | 120,000 | 16 | ||||||||
Contribution margin | 180,000 | $ | 24 | |||||||
Fixed expenses | 136,000 | |||||||||
Net operating income | $ | 44,000 | ||||||||
If the selling price per unit increases by 10% and unit sales drop
by 5%, then the best of estimate of the new net operating income
is:
Multiple Choice
$63,500.
$155,700.
$59,700.
$49,900.
49 | ||
January | February | |
Budgeted sales | 112000 | 132000 |
X Cost of goods sold % | 60% | 60% |
Budgeted cost of goods sold | 67200 | 79200 |
Add: Desired ending inventory | 23760 | 21960 |
Less: Beginning inventory | -20160 | -23760 |
Budgeted purchases | 70800 | 77400 |
Payment for January purchases | 56640 | =70800*80% |
Payment for February purchases | 15480 | =77400*20% |
Cash disbursements in February | 72120 | |
$72,120 is correct option | ||
50 | ||
Unit sales | 2090 | |
X Contribution margin per unit | 18 | =30-12 |
Contribution margin | 37620 | |
Less: Fixed costs | 12500 | |
Net operating income | 25120 | |
$25,120 is correct option | ||
51 | ||
Current unit sales | 7500 | =300000/40 |
New unit sales | 7125 | =7500*(1-5%) |
New selling price | 44 | =40*1.10 |
Unit sales | 7125 | |
X Contribution margin per unit | 28 | =44-16 |
Contribution margin | 199500 | |
Less: Fixed costs | 136000 | |
Net operating income | 63500 | |
$63,500 is correct option |
Workings for 49: | ||
January | February | |
Add: Desired ending inventory | =79200*30% | =122000*60%*30% |
Less: Beginning inventory | =67200*30% | =79200*30% |