The following information has been provided by Jared Incorporated:
Budgeted sales for August and September are $120,000 and $140,000, respectively.
Budgeted inventory purchases for August and September are $60,000 and $84,000, respectively.
30% of purchases are paid for during the month of purchase and the remaining 70% are paid for during the subsequent month.
20% of sales are collected during the month of sale and the remaining 80% are collected during the subsequent month.
Variable operating costs are budgeted at 25% of sales. Fixed operating costs are budgeted at $36,000 monthly and include depreciation expense of $7,000. Operating costs are paid for in the month that they are incurred.
The cash balance on September 1st was $10,000. Jared's goal is to maintain a $10,000 cash balance. Jared can borrow cash in increments of $1,000.
How much cash is budgeted to be paid in September for operating costs?
A) $36,000
B) $35,000
C) $71,000
D) $64,000
Correct Answer:
Verified
Q49: Chestnut Corporation has budgeted sales as follows:
April:
Q50: Chestnut Corporation has budgeted sales as follows:
April:
Q51: Pecan Corporation's budgeted March cash sales are
Q52: The following information has been provided by
Q53: The following information has been provided by
Q55: The following information has been provided by
Q56: The following information has been provided by
Q57: The following information has been provided by
Q58: The following information has been provided by
Q59: The following information has been provided by
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents