Budget i ng MODULE 8-BUDGETI NG C.I t a i d si nt h eu s eo fr e s o u r c e sa n de mp l o y e e sb ys e t t i n gab e n c h ma r kt h a tc a nb eu s e d f o rt h es u b s e q u e n t e v a l u a t i o no f p e r f o r ma n c e . D.I t p r o v i d e so r g a n i z a t i o n a l i n d e p e n d e n c e . THEORI ES: Ba s i cCo n c e p t s 1 .T h ec o n c e p t o f“ ma n a g e me n t b ye x c e p t i o n ”r e f e r st oma n a g e me n t ’ sc o n s i d e r a t i o no f A.o n l yt h o s ei t e mst h a t v a r yma t e r i a l l yf r o me x p e c t a t i o n s . B.o n l yr a r ee v e n t s . C.s a mp l e ss e l e c t e da t r a n d o m. D.o n l ys i g n i fi c a n t u n f a v o r a b l ed e v i a t i o n s . 4 . Wh i c ho f t h ef o l l o wi n gi sl e a s t l i k e l yar e a s o nwh yac o mp a n yp r e p a r e si t sb u d g e t ? A.T op r o v i d eab a s i sf o rc o mp a r i s o no f a c t u a l p e r f o r ma n c e B. T oc o mmu n i c a t et h ec o mp a n y ’ sp l a n st h r o u g h o u t t h ee n t i r eb u s i n e s so r g a n i z a t i o n C.T oc o n t r o l i n c o mea n de x p e n d i t u r ei nap a r t i c u l a r p e r i o d . D.T oma k es u r et h ec o mp a n ye x p a n d si t so p e r a t i o n s . 8 . Af o r ma lwr i t t e ns t a t e me n to fma n a g e me n t ’ sp l a n sf o rt h ef u t u r e ,p a c k a g e di nfi n a n c i a l t e r ms , i sa : A.Re s p o n s i b i l i t yr e p o r t . C.Co s t o f p r o d u c t i o nr e p o r t . D.Bu d g e t . B.Pe r f o r ma n c er e p o r t . 2 . Bu d g e t sa r er e l a t e dt owh i c ho f t h ef o l l o wi n gma n a g e me n t f u n c t i o n s ? A.Pl a n n i n g C.Co n t r o l D.a l l o f t h e s e B. Pe r f o r ma n c ee v a l u a t i o n 5 . Wh i c ho f t h ef o l l o wi n gd o e sn o t c o n t r i b u t et oa ne ff e c t i v eb u d g e t i n g ? A.T o pma n a g e me n t i si n v o l v e di nb u d g e t i n g . B. T og i v ee a c hma n a g e raf r e eh a n di nt h ep r e p a r a t i o no ft h eb u d g e t ,t h ed a t awi t h i nt h e ma s t e rb u d g e t a r efl e x i b l e . C.T h eo r g a n i z a t i o ni sd i v i d e di n t or e s p o n s i b i l i t yu n i t s . D.T h e r ei sc o mmu n i c a t i o no f r e s u l t s . 6 .T h eb u d g e t st h a ta r eb a s e do nav e r yh i g hl e v e l so fp e r f o r ma n c e ,l i k ee x p e c t e dc o s t su s i n g i d e a l s t a n d a r d s , A.a s s i s t i np l a n n i n gt h eo p e r a t i o n so f t h ec o mp a n y B. s t i mu l a t ep e o p l et op e r f o r mb e t t e rt h a nt h e yo r d i n a r i l ywo u l d C.a r eh e l p f u l i ne v a l u a t i n gt h ep e r f o r ma n c eo f ma n a g e r s D.c a nl e a dt ol o wl e v e l so f p e r f o r ma n c e 2 2 .Bu d g e t i n gs u p p o r t st h ep l a n n i n gp r o c e s sb ye n c o u r a g i n ga l lo ft h ef o l l o wi n ga c t i v i t i e s e x c e p t : A.Re q u i r i n ga l l o r g a n i z a t i o n a l u n i t st oe s t a b l i s ht h e i rg o a l sf o rt h ec o mi n gp e r i o d . B.I n c r e a s i n gt h e mo t i v a t i o no fma n a g e r sa n de mp l o y e e sb yp r o v i d i n ga g r e e d u p o n e x p e c t a t i o n s . C.I mp r o v i n go v e r a l ld e c i s i o nma k i n gb yc o n s i d e r i n ga l lv i e wp o i n t s ,o p t i o n s ,a n dc o s t c o n t r o l p r o g r a ms . D.Di r e c t i n ga n dc o o r d i n a t i n go p e r a t i o n sd u r i n gt h ep e r i o d . 7 . Wh i c ho f t h ef o l l o wi n gs t a t e me n t si si n c o r r e c t ? A.Ani mp o s e db u d g e t i st h es a mea sap a r t i c i p a t i v eb u d g e t . B. Pr e p a r a t i o no f t h eb u d g e t wo u l db et h er e s p o n s i b i l i t yo f e a c hr e s p o n s i b i l i t yu n i t . C.T o pma n a g e me n t ’ ss u p p o r t i sn e c e s s a r yt op r o mo t eb u d g e t p a r t i c i p a t i o n . D.T h et o pma n a g e me n t s h o u l dr e v i e wa n da p p r o v ee a c hr e s p o n s i b i l i t yu n i t ’ sb u d g e t . 3 . Wh i c ho f t h ef o l l o wi n ga d v a n t a g e sd o e sab u d g e t mo s t l yp r o v i d e ? A.Co o r d i n a t i o ni si n c r e a s e d . B.Pl a n n i n gi se mp h a s i z e d . C.Co mmu n i c a t i o ni sc o n t i n u o u s . D.Co mp a r i s o no f a c t u a l v e r s u sb u d g e t e dd a t a . 9 .T h ep r i ma r yr o l eo f t h eb u d g e t d i r e c t o ra n dt h eb u d g e t i n gd e p a r t me n t i st o A.Se t t l ed i s p u t e sa mo n go p e r a t i n ge x e c u t i v e sd u r i n gt h ed e v e l o p me n to ft h ea n n u a l o p e r a t i n gp l a n . B.De v e l o pt h ea n n u a lp r o fi tp l a nb ys e l e c t i n gt h ea l t e r n a t i v e st ob ea d o p t e df o r mt h e s u g g e s t i o n ss u b mi t t e db yt h ev a r i o u so p e r a t i n gs e g me n t s . C.Co mp i l et h eb u d g e t a n dma n a g et h eb u d g e t p r o c e s s . D.J u s t i f yt h eb u d g e t t ot h ec o r p o r a t ep l a n n i n gc o mmi t t e eo f t h eb o a r do f d i r e c t o r s . 2 4 .Wh i c ho f t h ef o l l o wi n gi sNOTa na d v a n t a g eo f b u d g e t i n g ? A.I t f o r c e sma n a g e r st op l a n . B.I t p r o v i d e sr e s o u r c ei n f o r ma t i o nt h a t c a nb eu s e dt oi mp r o v ed e c i s i o nma k i n g . 433 Budget i ng B. z e r o b a s e db u d g e t i n g 1 0 .Th ep r i ma r yv a r i a b l ea ff e c t i n ga c t i v ep a r t i c i p a t i o na n dc o mmi t me n tt ot h eb u d g e ta n dt h e c o n t r o l s y s t e mi s A.Ma n a g e me n t e ff o r t st oa c h i e v et h eb u d g e t r a t h e r t h a no p t i mi z er e s u l t s . B.T h er i g i da d h e r e n c et ot h eb u d g e t wi t h o u t r e c o g n i z i n gc h a n g i n gc o n d i t i o n s . C.T o pma n a g e me n t i n v o l v e me n t i ns u p p o r t o f t h eb u d g e t . D.T h eo p p o r t u n i t yb u d g e t i n gg i v e st or i s k t a k e rma n a g e r sf o rd e p a r t me n t g r o wt h . 1 2 .Av a r i a n to ffi s c a l y e a rb u d g e t i n gwh e r e b yat we l v e mo n t hp r o j e c t i o n si n t ot h ef u t u r ei s ma i n t a i n e da t a l l t i me s : A.F o r e c a s t i n g . C.Co n t i n u o u sb u d g e t i n g . B.Z e r o b a s e db u d g e t i n g . D.Ca l e n d a rb u d g e t i n g . 3 5 .Th eme t h o do fb u d g e t i n gwh i c ha d d so n emo n t h ’ sb u d g e tt ot h ee n do ft h ep l a nwh e nt h e c u r r e n t mo n t h ’ sb u d g e t i sd r o p p e df r o mt h ep l a nr e f e r st o A.L o n g t e r mb u d g e t C.I n c r e me n t a l b u d g e t B.Op e r a t i o n sb u d g e t D.Co n t i n u o u sb u d g e t 4 1 .Th eb u d g e ta p p r o a c ht h a ti smo r er e l e v a n twh e nt h ec o n t i n u a n c eo fa na c t i v i t yo ro p e r a t i o n mu s t b ej u s t i fi e do nt h eb a s i so f i t sn e e do ru s e f u l n e s st ot h eo r g a n i z a t i o n . A.t h ei n c r e me n t a l a p p r o a c h C.t h eb a s e l i n ea p p r o a c h B.t h ez e r o b a s e da p p r o a c h D.b o t haa n dba r et r u e 1 1 .Th ep r o c e s so fd e v e l o p i n gb u d g e te s t i ma t e sb yr e q u i r i n ga l ll e v e l so fma n a g e me n tt o e s t i ma t es a l e s ,p r o d u c t i o n ,a n do t h e ro p e r a t i n gd a t aa st h o u g ho p e r a t i o n swe r eb e i n g i n i t i a t e df o rt h efi r s t t i mei sr e f e r r e dt oa s : A.F o r e c a s t i n g . C.Co n t i n u o u sb u d g e t i n g . B.Z e r o b a s e db u d g e t i n g . D.Pr o g r a mb u d g e t i n g . 3 8 .Wh i c ho f t h ef o l l o wi n gi sac o n t e mp o r a r ya p p r o a c ht ob u d g e t i n g ? A.i n c r e me n t a l a p p r o a c h C.b a s e l i n ea p p r o a c h B.z e r o b a s e da p p r o a c h D.b o t haa n dba r et r u e 5 1 .Ze r o b a s eb u d g e t i n gr e q u i r e sma n a g e r st o A.J u s t i f ye x p e n d i t u r e st h a t a r ei n c r e a s e so v e rt h ep r i o rp e r i o d ’ sb u d g e t e da mo u n t . B.J u s t i f ya l l e x p e n d i t u r e s , n o t j u s t i n c r e a s e so v e rl a s t y e a r ’ sa mo u n t . C.Ma i n t a i naf u l l y e a rb u d g e t i n t a c t a t a l l t i me s . D.Ma i n t a i nab u d g e t wi t hz e r oi n c r e a s e so v e rt h ep r i o rp e r i o d . 2 7 .Ac o n t i n u o u sb u d g e t A.i sab u d g e t t h a t i sr e v i s e dmo n t h l yo rq u a r t e r l y . B.i same d i u mt e r mp l a nt h a t c o n s i s t so f mo r et h a n2y e a r s ’ p r o j e c t i o n s . C.i sa p p r o p r i a t eo n l yf o ru s eo f an o t f o r p r o fi t e n t i t y . D.wo r k sb e s t f o ra ne n t i t yt h a t c a nr e l i a b l yf o r e c a s t e v e n t say e a ro rmo r ei n t ot h ef u t u r e . 1 3 .Ze r o b a s e db u d g e t i n g : A.i n v o l v e st h er e v i e wo f c h a n g e sma d et oa no r g a n i z a t i o n ’ so r i g i n a l b u d g e t . B.d o e sn o t p r o v i d eas u mma r yo f a n n u a l p r o j e c t i o n s . C.i n v o l v e st h er e v i e wo f e a c hc o s t c o mp o n e n t f r o mac o s t / b e n e fi t p e r s p e c t i v e . D.e mp h a s i z e st h er e l a t i o n s h i po f e ff o r t t op r o j e c t e da n n u a l r e v e n u e s . 3 7 .“ I n c r e me n t a l b u d g e t i n g ” r e f e r st o A.l i n e b y l i n ea p p r o v a l o f e x p e n d i t u r e s B. s e t t i n gb u d g e t a l l o wa n c e sb a s e do np r i o r y e a re x p e n d i t u r e s C.r e q u i r i n gt o pma n a g e me n t a p p r o v a l o f i n c r e a s e si nb u d g e t s D.u s i n gi n c r e me n t a l r e v e n u e sa n dc o s t si nb u d g e t i n g 4 9 .Ab u d g e tp l a nf o ra n n u a lfi x e dc o s t st h a ta r i s e sf r o mt o pma n a g e me n td e c i s i o n sd i r e c t l y r e fl e c t i n gc o r p o r a t ep o l i c y . C.Di s c r e t i o n a r yb u d g e t . A.F l e x i b l eb u d g e t . B.St a t i cb u d g e t . D.Pr o g r a mb u d g e t . 3 6 .Th et e r m“ d e c i s i o np a c k a g e ”r e l a t e st o A.c o mp r e h e n s i v eb u d g e t i n g D.l i n eb u d g e t i n g C.p r o g r a mb u d g e t i n g 434 1 8 .As y s t e ma t i z e da p p r o a c hk n o wna sz e r o b a s e db u d g e t i n g : A.Cl a s s i fi e st h eb u d g e tb yt h ep r i o ry e a r ’ sa c t i v i t ya n de s t i ma t e st h eb e n e fi t sa r i s i n gf r o m e a c ha c t i v i t y . B. Co mme n c ewi t he i t h e rt h ec u r r e n t l e v e l o f s p e n d i n go r p r o j e c t e dwh i c h e v e ri sl o we r . C.Pr e s e n t sp l a n n e da c t i v i t i e sf o rap e r i o do f t i meb u t d o e sn o t p r e s e n t afi r mc o mmi t me n t . D.Di v i d e st h ea c t i v i t i e so f i n d i v i d u a l r e s p o n s i b i l i t yc e n t e r si n t oas e r i e so f p a c k a g e st h a t a r e p r i o r i t i z e d . Budget i ng 2 0 .Wh i c ho f t h ef o l l o wi n gs t a t e me n t sa b o u t Z e r o b a s e db u d g e t i n gi si n c o r r e c t ? A.Al l a c t i v i t i e si nt h ec o mp a n ya r eo r g a n i z e di n t ob r e a k u pu n i t sc a l l e dp a c k a g e s . B. Al l c o s t sh a v et ob ej u s t i fi e de v e r yb u d g e t i n gp e r i o d . C.T h ep r o c e s si sn o tt i mec o n s u mi n gs i n c ej u s t i fi c a t i o no fc o s t sc a nb ed o n ea sar o u t i n e ma t t e r . D.Z e r o b a s e db u d g e t i n gi n c l u d e sv a r i a b l ec o s t so n l y . 3 4 .Bu d g e t i n ge x p e n d i t u r e sb yp u r p o s ei sc a l l e d A.p r o g r a mb u d g e t i n g C.z e r o b a s e db u d g e t i n g B. l i n eb u d g e t i n g D.fl e x i b l eb u d g e t i n g 2 6 .As e r i e so f b u d g e t sf o rv a r y i n gl e v e l so f a c t i v i t yi sa : A.V a r i a b l ec o s t b u d g e t . C.Ma s t e rb u d g e t . B.F l e x i b l eb u d g e t . D.Z e r o b a s e db u d g e t . 4 8 .I f ac o mp a n ywi s h e st oe s t a b l i s haf a c t o r yo v e r h e a db u d g e t s y s t e mi nwh i c he s t i ma t e dc o s t s c a nb ed e r i v e dd i r e c t l yf r o me s t i ma t e so f a c t i v i t yl e v e l s , i t s h o u l dp r e p a r ea A.fl e x i b l eb u d g e t . C.Di s c r e t i o n a r yb u d g e t . B.Pr o g r a mb u d g e t . D.Ma n u f a c t u r i n gb u d g e t . 4 6 .Th eb a s i cd i ff e r e n c eb e t we e nama s t e rb u d g e t a n dafl e x i b l eb u d g e t i st h a t a A.F l e x i b l eb u d g e t c o n s i d e r so n l yv a r i a b l ec o s t sb u t ama s t e rb u d g e t c o n s i d e r sa l l c o s t s . B.F l e x i b l eb u d g e ta l l o wsma n a g e me n tl a t i t u d ei nme e t i n gg o a l swh e r e a sama s t e rb u d g e t i sb a s e do nafi x e ds t a n d a r d . C.Ma s t e rb u d g e ti sf o ra ne n t i r ep r o d u c t i o nf a c i l i t yb u tafl e x i b l eb u d g e ti sa p p l i c a b l et o s i n g l ed e p a r t me n t o n l y . D.Ma s t e rb u d g e ti sb a s e do no n es p e c i fi cl e v e l o fp r o d u c t i o na n dafl e x i b l eb u d g e tc a nb e p r e p a r e df o r a n yp r o d u c t i o nl e v e l wi t h i nar e l e v a n t r a n g e 2 8 .As t a t i cb u d g e t i sn o t a p p r o p r i a t ei ne v a l u a t i n gama n a g e r ' se ff e c t i v e n e s si f ac o mp a n yh a s A.s u b s t a n t i a l fi x e dc o s t s . B.s u b s t a n t i a l v a r i a b l ec o s t s . C.p l a n n e da c t i v i t yl e v e l st h a t ma t c ha c t u a l a c t i v i t yl e v e l s . D.n ov a r i a b l ec o s t s . 4 5 .Fl e x i b l eb u d g e t i n gi sar e p o r t i n gs y s t e mwh e r e i nt h e A.Bu d g e t s t a n d a r d sma yb ea d j u s t e da t ma n a g e me n t ’ sd i s c r e t i o n . B.Pl a n n e dl e v e l o f a c t i v i t yi sa d j u s t e dt ot h ea c t u a l l e v e l o f a c t i v i t yb e f o r et h ep e r f o r ma n c e r e p o r t i sp r e p a r e d . C.Re p o r t i n gd a t e sv a r ya c c o r d i n gt ot h ema n a g e r i a l l e v e l so f t h eu s e r s . D.Pa c k a g e so f a c t i v i t i e sv a r yf r o mp e r i o dt op e r i o d . 4 7 .Wh i c ho f t h ef o l l o wi n gi sad i ff e r e n c eb e t we e nas t a t i cb u d g e t a n dafl e x i b l eb u d g e t s ? A.Afl e x i b l eb u d g e t i n c l u d e so n l yv a r i a b l ec o s t s ; as t a t i cb u d g e t i n c l u d e so n l yfi x e dc o s t s . B.Afl e x i b l eb u d g e t i n c l u d e sa l l c o s t s , as t a t i cb u d g e t i n c l u d e so n l yfi x e dc o s t s . C.Afl e x i b l eb u d g e t g i v e sd i ff e r e n ta l l o wa n c e sf o rd i ff e r e n t l e v e l so f a c t i v i t y , as t a t i cb u d g e t d o e sn o t . D.T h e r ei sn od i ff e r e n c eb e t we e nt h et wo . 1 5 .Ab u d g e tt h a tp r e s e n t st h ep l a nf o rar a n g eo fa c t i v i t ys ot h a tt h ep l a nc a nb ea d j u s t e df o r c h a n g e si na c t i v i t yl e v e l si sr e f e r r e dt oa s : A.Z e r o b a s e db u d g e t i n g . B.Co n t i n u o u sb u d g e t i n g . C.F l e x i b l eb u d g e t i n g . D.Pr o g r a mp l a n n i n ga n db u d g e t i n gs y s t e m. 1 7 .As y s t e mt h a tc l a s s i fi e sb u d g e tr e q u e s t sb ya c t i v i t ya n de s t i ma t e st h eb e n e fi t sa r i s i n gf r o m e a c ha c t i v i t y : A.I n c r e me n t a l b u d g e t i n gs y s t e m. B.St a t i cb u d g e t i n gs y s t e m. C.Pr o g r a mp l a n n i n ga n db u d g e t i n gs y s t e m. D.Pa r t i c i p a t i v es y s t e m. 1 6 .Afl e x i b l eb u d g e t i s A.o n et h a t c a nb ec h a n g e dwh e n e v e rama n a g e rs od e s i r e s B. a d j u s t e dt or e fl e c t e x p e c t e dc o s t sa t t h ea c t u a l l e v e l o f a c t i v i t y C.o n et h a t u s e st h ef o r mu l at o t a l c o s t s=c o s t p e r u n i t xu n i t sp r o d u c e d D.t h es a mea sac o n t i n u o u sb u d g e t 2 1 .Ab u d g e t t h a t i d e n t i fi e sr e v e n u e sa n dc o s t swi t ha ni n d i v i d u a l c o n t r o l l i n gt h e i r i n c u r r e n c ei s A.Ma s t e rb u d g e t C.Pr o d u c t b u d g e t B. Re s p o n s i b i l i t yb u d g e t D.No n eo f t h ea b o v e 2 5 .Th ed i ff e r e n c eb e t we e na ni n d i v i d u a l ' ss u b mi t t e db u d g e tp r o j e c t i o na n dh i so rh e rb e s t 435 Budget i ng e s t i ma t eo f t h ei t e mb e i n gp r o j e c t e di sa ne x a mp l eo f A.p a d d i n gt h eb u d g e t B.a d h e r i n gt oz e r o b a s e db u d g e t i n ga s s u mp t i o n s C.c r e a t i n gb u d g e t a r ys l a c k D.b e i n gi n c o n g r u e n t wi t hp a r t i c i p a t i v eb u d g e t i n g D.No n eo f t h ea b o v e 4 4 .Ac o mmo ns t a r t i n gp o i n t i nt h eb u d g e t i n gp r o c e s si s A.e x p e c t e df u t u r en e t i n c o me . C.t omo t i v a t et h es a l e sf o r c e . B.p a s t p e r f o r ma n c e . D.ac l e a ns l a t e , wi t hn oe x p e c t a t i o n s . 5 7 .Wh i c ho n eo f t h ef o l l o wi n gi sa ne x t e r n a l f a c t o rt h a t wo u l dn e e dt ob ec o n s i d e r e di nf o r mi n ga n i n i t i a l b u d g e t p r o p o s a l ? A.c h a n g e si np r o d u c t d e s i g n B. i n t r o d u c t i o no f an e wp r o d u c t C.c o mp e t i t o r s ' a c t i o n s D.a d o p t i o no f an e wma n u f a c t u r i n gp r o c e s s 4 3 .Bu d g e t s l a c ki sac o n d i t i o ni nwh i c h A.De ma n di sl o wa t v a r i o u st i me so f t h ey e a r B.Ex c e s sma c h i n ec a p a c i t ye x i s t si ns o mea r e a so f t h ep l a n t C.T h e r ei sa ni n t e n t i o n a l o v e r e s t i ma t eo f e x p e n s e so ra nu n d e r e s t i ma t eo f r e v e n u e s D.Ma n a g e r sg r a n t f a v o r e de mp l o y e e se x t r at i me o ff 3 9 .Th ep r o c e d u r ef o rs e t t i n gp r o fi to b j e c t i v e si nwh i c ht h ed e t e r mi n a t i o no fp r o fi to b j e c t i v e si s 1 4 .Op e r a t i n gb u d g e t sa r e s u b o r d i n a t e dt ot h ep l a n n i n g , a n dt h eo b j e c t i v e se me r g ea st h ep r o d u c t o f t h ep l a n n i n gi t s e l f A.af o r e c a s t o f e x p e c t e do p e r a t i n ge x p e n s e s . i st h e B.af o r e c a s t o f o p e r a t i n ge x p e n s e sa n dr e l a t e dr e v e n u e s . A.ap r i o r i me t h o d C.p r a c t i c a l me t h o d C.af o r e c a s t o f u n i t so f p r o d u c t i o n . D.ap o s t e r i o r i me t h o d B.t h e o r e t i c a l me t h o d D.c o n c e r n e dwi t ht h ei n c o me g e n e r a t i n ga c t i v i t i e so f afi r m. 4 0 .Th ep r o c e d u r ef o rs e t t i n gp r o fi to b j e c t i v e si nwh i c hma n a g e me n ts p e c i fi e sag i v e nr a t eo f r e t u r nt h a t i t s e e k st or e a l i z ei nt h el o n gr u nb yme a n so f p l a n n i n gt o wa r dt h a t e n di st h e 5 4 .Wh a t i st h ep r o p e rp r e p a r a t i o ns e q u e n c i n go f t h ef o l l o wi n gb u d g e t s ? A.ap r i o r i me t h o d C.p r a g ma t i cme t h o d 1 . Bu d g e t e dBa l a n c eSh e e t B.t h e o r e t i c a l me t h o d D.a dh o cme t h o d 2 . Sa l e sBu d g e t 3 . Se l l i n ga n dAd mi n i s t r a t i v eBu d g e t 5 0 .Bu d g e t i n gp r o c e s si nwh i c hi n f o r ma t i o nfl o wst o pd o wna n db o t t o mu pi sr e f e r r e dt oa s : 4 . Bu d g e t e dI n c o meSt a t e me n t A.Co n t i n u o u sb u d g e t i n g . C.Pe r p e t u a l b u d g e t i n g A.1 , 2 , 3 , 4 C.2 , 3 , 4 , 1 B.Pa r t i c i p a t i v eb u d g e t i n g D.J o i n t b u d g e t i n g B 2 , 3 , 1 , 4 D.2 , 4 , 1 , 3 4 2 .Wh i c ho f t h ef o l l o wi n gi sn o t ap o t e n t i a l p r o b l e mwi t hp a r t i c i p a t i v eb u d g e t i n g ? A.s e t t i n gs t a n d a r d st h a t a r ee i t h e rt o oh i g ho rt o ol o w B.p a d d i n gt h eb u d g e t C.b u i l ds l a c ki n t ot h eb u d g e t D.a l l o f t h ea b o v ea r ep o t e n t i a l p r o b l e ms 2 9 .I ne s t i ma t i n gt h es a l e sv o l u mef o rama s t e rb u d g e t ,wh i c ho ft h ef o l l o wi n gt e c h n i q u e sma y b eu s e dt oi mp r o v et h ep r o j e c t i o n s ? A.Br a i n s t o r mi n g . B.St a t i s t i c a l a n a l y s i s . C.Es t i ma t i n gf r o mp r e v i o u ss a l e sv o l u me . D.Al l o f t h e s ea r eu s e f u l . 3 3 .Th ei d e a l fi n a n c i a l p l a n n i n gp r o c e s swo u l db e A.t o p d o wnp l a n n i n g . B.b o t t o mu pp l a n n i n g . C.ac o mb i n a t i o no f t o p d o wna n db o t t o mu pp l a n n i n g . 3 0 .Us i n gt h ec o n c e p t o f ‘ e x p e c t e dv a l u e ”i ns a l e sf o r e c a s t i n gme a n st h a t t h es a l e sf o r e c a s t t ob e u s e di s A.d e v e l o p e du s i n gt h ei n d i c a t o rme t h o d 436 Budget i ng B. t h es u mo f t h es a l e se x p e c t e db yi n d i v i d u a l ma n a g e r s C.b a s e do ne x p e c t e ds e l l i n gp r i c e so f t h ep r o d u c t s D.b a s e do np r o b a b i l i t i e s 3 1 .Se v e r a ls a l e sf o r e c a s t sa r ea v a i l a b l ef r o md i ff e r e n ts o u r c e sa n dt h ema n a g e r sh a v eg o o d i d e a sa b o u t t h e i r l i k e l i h o o d s .T h i ss i t u a t i o nc a l l f o rt h eu s eo f A.t h ee x p e c t e dv a l u ec o n c e p t C.i n d i c a t o rme t h o d s B. h i s t o r i c a l a n a l y s i s D.as c a t t e rd i a g r a m 5 3 .Ano v e r l yo p t i mi s t i cs a l e sb u d g e t ma yr e s u l t i n A.i n c r e a s e si ns e l l i n gp r i c e sl a t ei nt h ey e a r . B.i n s u ffic i e n t i n v e n t o r i e s . C.i n c r e a s e ds a l e sd u r i n gt h ey e a r . D.e x c e s s i v ei n v e n t o r i e s . 1 9 .Wh i c ho f t h ef o l l o wi n gs t a t e me n t si sT r u e ? A.Un d e rz e r o b a s e db u d g e t i n g ,ama n a g e ri sr e q u i r e dt os t a r ta tz e r ob u d g e tl e v e l se a c h p e r i o d , a si f t h ep r o g r a msi n v o l v e dwe r eb e i n gi n i t i a t e df o r t h efi r s t t i me . B. T h ep r i ma r yp u r p o s eo f t h ec a s hb u d g e t i st os h o wt h ee x p e c t e dc a s hb a l a n c ea t t h ee n d o f t h eb u d g e t p e r i o d . C.Bu d g e td a t aa r eg e n e r a l l yp r e p a r e db yt o pma n a g e me n ta n dd i s t r i b u t e dd o wn wa r di na n o r g a n i z a t i o n . D.T h eb u d g e tc o mmi t t e ei sr e s p o n s i b l ef o rp r e p a r i n gd e t a i l e db u d g e tfi g u r e si na n o r g a n i z a t i o n . 2 3 .Wh i c ho f t h ef o l l o wi n gi sav a l i ds t a t e me n t ? A.Re s p o n s i b i l i t yb u d g e ti d e n t i fi e sr e v e n u ea n dc o s t swi t ht h ei n d i v i d u a l r e s p o n s i b l ef o rt h e i r i n c u r r e n c e . B. T h eb e s t wa yt oe s t a b l i s hb u d g e t fi g u r e si st ou s el a s t y e a r ’ sa c t u a l c o s ta n da c t i v i t yd a t a a st h i sy e a r ’ sb u d g e t e s t i ma t e s . C.As a l e sb u d g e t a n das a l e sf o r e c a s t a r et h es a met h i n g . D.T h ep r i ma r yp u r p o s eo f t h ec a s hb u d g e t i st os h o wt h ee x p e c t e dc a s hb a l a n c ea t t h ee n d o f t h eb u d g e t p e r i o d . 5 6 .Wh i c ho ft h ef o l l o wi n gb u d g e t sp r o v i d e st h ed a t af o rt h ep r e p a r a t i o no ft h ed i r e c tl a b o rc o s t b u d g e t ? A.Di r e c t ma t e r i a l sp u r c h a s eb u d g e t . C.Sa l e sb u d g e t . D.Pr o d u c t i o nb u d g e t . B.Ca s hb u d g e t . PROBL EMS: Co s te s t i ma t i onf o r mul a 1 . Ma n a g e me n th a sp r e p a r e dag r a p hs h o wi n gt h et o t a l c o s t so f o p e r a t i n gb r a n c hwa r e h o u s e s t h r o u g h o u tt h ec o u n t r y .Th ec o s tl i n ec r o s s e st h ev e r t i c a l a x i sa tP4 0 0 , 0 0 0 .Th et o t a l c o s t o fo p e r a t i n go n eb r a n c hi sP6 5 0 , 0 0 0 . Th et o t a lc o s to fo p e r a t i n gt e nb r a n c h e si s P2 , 9 0 0 , 0 0 0 .F o rp u r p o s e so fp r e p a r i n gafl e x i b l eb u d g e tb a s e do nt h en u mb e ro fb r a n c h wa r e h o u s e si no p e r a t i o n ,wh a tf o r mu l awo u l db eu s e dt od e t e r mi n eb u d g e t e dc o s t sa t v a r i o u sl e v e l so f a c t i v i t y ? A. Y=P4 0 0 , 0 0 0+P2 5 0 , 0 0 0 X C.Y=P6 5 0 , 0 0 0+P4 0 0 , 0 0 0 X B. Y=P4 0 0 , 0 0 0+P2 9 0 , 0 0 0 X D.Y=P6 5 0 , 0 0 0+P2 5 0 , 0 0 0 X 5 5 .Th ei n c r e a s e du s eo fa u t o ma t i o na n dl e s su s eo f t h ewo r kf o r c ei nc o mp a n i e sh a sc a u s e da t r e n dt o wa r d sa ni n c r e a s ei n A.b o t hv a r i a b l ea n dfi x e dc o s t s . B.fi x e dc o s t sa n dad e c r e a s ei nv a r i a b l ec o s t s . C.v a r i a b l ec o s t sa n dad e c r e a s ei nfi x e dc o s t s . D.v a r i a b l ec o s t sa n dn oc h a n g ei nfi x e dc o s t s . 3 2 .I np r e p a r i n gac a s hb u d g e t , wh i c ho f t h ef o l l o wi n gi sn o r ma l l yt h es t a r t i n gp o i n t f o rp r o j e c t i n g c a s hr e q u i r e me n t s ? A.F i x e da s s e t s . C.Ac c o u n t sr e c e i v a b l e . B.Sa l e s . D.I n v e n t o r i e s . Sa l e sbu dge t Pu r c ha s e sb u dge t–me r c h a nd i s i n gc on c e r n 2 . PT OCo mp a n yd e s i r e sa ne n d i n gi n v e n t o r yo fP1 4 0 , 0 0 0 .I te x p e c t ss a l e so fP8 0 0 , 0 0 0a n d h a sab e g i n n i n gi n v e n t o r yo fP1 3 0 , 0 0 0 .Co s to fs a l e si s6 5 %o fs a l e s .Bu d g e t e dp u r c h a s e s a r e A.P 5 3 0 , 0 0 0 C.P 8 1 0 , 0 0 0 5 2 .Re c o g n i t i o no f t h ema n yu n c e r t a i n t i e si nb u d g e t i n gi se x e mp l i fi e db yc o mp a n i e sn o r ma l l y A.f o r e c a s t i n gs a l e s B. e s t a b l i s h i n gmi n i mu mr e q u i r e dc a s hb a l a n c e s C.f o r e c a s t i n go n l yfi x e dc o s t s D.o mi t t i n ge x p e c t e dd i v i d e n dp a y me n t sf r o mb u d g e t e dd i s b u r s e me n t s 437 Budget i ng B. P 7 9 0 , 0 0 0 D.P1 , 0 7 0 , 0 0 0 7 3 . Ca l y p s oCo .h a sp r o j e c t e ds a l e st ob eP6 0 0 , 0 0 0i nJ a n u a r y ,P7 5 0 , 0 0 0i nF e b r u a r y ,a n d P8 0 0 , 0 0 0i nMa r c h .Ca l y p s owa n t st oh a v e5 0 %o fn e x t mo n t h ’ ss a l e sn e e d so nh a n da tt h e e n do famo n t h .I fCa l y p s oh a sa na v e r a g eg r o s sp r o fi to f4 0 %,wh a ta r et h eF e b r u a r y2 8 p u r c h a s e s ? A.P4 6 5 , 0 0 0 C.P7 7 5 , 0 0 0 B. P3 1 0 , 0 0 0 D.P4 2 8 , 0 0 0 4 . Bl u eCo mp a n yb u d g e t e dp u r c h a s e so f P1 0 0 , 0 0 0 .Co s t o f s a l e swa sP1 2 0 , 0 0 0a n dt h ed e s i r e d e n d i n gi n v e n t o r ywa sP4 2 , 0 0 0 .Th eb e g i n n i n gi n v e n t o r ywa s A.P2 0 , 0 0 0 C.P4 2 , 0 0 0 B. P3 2 , 0 0 0 D.P6 2 , 0 0 0 .L o r i eCo mp a n yp l a n st os e l l 4 0 0 , 0 0 0u n i t so f fi n i s h e dp r o d u c t i nJ u l ya na n t i c i p a t e sag r o wt h r a t ei ns a l e so f5 %p e rmo n t h .T h ed e s i r e dmo n t h l ye n d i n gi n v e n t o r yi nu n i t so ffi n i s h e d p r o d u c t i s8 0 %o f t h en e x t mo n t h ’ se s t i ma t e ds a l e s . T h e r ea r e3 0 0 , 0 0 0fi n i s h e du n i t si nt h ei n v e n t o r yo nJ u n e3 0 .Ea c hu n i to ffi n i s h e dp r o d u c t r e q u i r e sf o u rp o u n d so fd i r e c tma t e r i a l sa tac o s to fP2 . 5 0p e rp o u n d .T h e r ea r e8 0 0 , 0 0 0 p o u n d so f d i r e c t ma t e r i a l si nt h ei n v e n t o r yo nJ u n e3 0 . Ho wma n yu n i t ss h o u l db ep r o d u c e df o rt h et h r e e mo n t hp e r i o de n d i n gSe p t e mb e r3 0 ? C.1 , 3 3 1 , 4 4 0 A.1 , 2 6 0 , 0 0 0 B.1 , 3 2 8 , 0 0 0 D.1 , 4 2 4 , 0 5 0 En d i ngi n v e n t o r ybu dge t 8 .I f t h er e q u i r e dd i r e c t ma t e r i a l sp u r c h a s e sa r e8 , 0 0 0p o u n d sa n dt h ed i r e c t ma t e r i a l sr e q u i r e d f o rp r o d u c t i o ni st h r e et i me st h ed i r e c tma t e r i a l sp u r c h a s e s ,a n dt h eb e g i n n i n gd i r e c t ma t e r i a l sa r et h r e ea n dah a l ft i me st h ed i r e c tma t e r i a l sp u r c h a s e s ,wh a ta r et h ed e s i r e d e n d i n gd i r e c t ma t e r i a l i np o u n d s ? C.1 2 , 0 0 0 A.2 0 , 0 0 0 B. 4 , 0 0 0 D.3 2 , 0 0 0 5 .T h ep a y me n ts c h e d u l eo fp u r c h a s e sma d eo na c c o u n ti s :6 0 %i nt h et i mep e r i o do f p u r c h a s e ,3 0 %i nt h ef o l l o wi n gt i mep e r i o d ,a n d1 0 %i nt h es u b s e q u e n tt i mep e r i o d .T o t a l c r e d i tp u r c h a s e swe r eP2 0 0 , 0 0 0i nMa y ,a n dP1 0 0 , 0 0 0i nJ u n e .T o t a lp a y me n t so nc r e d i t p u r c h a s e swe r eP1 4 0 , 0 0 0i nJ u n e . Wh a t we r et h ec r e d i t p u r c h a s e si nt h emo n t ho f Ap r i l ? A.P2 0 0 , 0 0 0 C.P1 4 5 , 0 0 0 B.P1 0 0 , 0 0 0 D.P2 1 5 , 0 0 0 Pr o du c t i o nbu dg e t . Montalban Company’s sales budget shows the following expected sales for the following year: 6 Qu a r t e r Un i t s F i r s t 1 2 0 , 0 0 0 Se c o n d 1 6 0 , 0 0 0 T h i r d 9 0 , 0 0 0 F o u r t h 1 1 0 , 0 0 0 T o t a l 4 8 0 , 0 0 0 T h ei n v e n t o r ya t De c e mb e r3 1o f t h ep r i o ry e a rwa sb u d g e t e da t 3 6 , 0 0 0u n i t s .Th eq u a n t i t y o ffi n i s h e dg o o d si n v e n t o r ya tt h ee n do fe a c hq u a r t e ri st oe q u a l 3 0 %o ft h en e x tq u a r t e r ’ s b u d g e t e ds a l e so f u n i t s . Ho w mu c hs h o u l dt h ep r o d u c t i o nb u d g e ts h o wf o ru n i t st ob ep r o d u c e dd u r i n gt h efi r s t q u a r t e r ? C.1 3 2 , 0 0 0 A. 4 8 , 0 0 0 B. 9 6 , 0 0 0 D.1 4 4 , 0 0 0 438 Ra wma t e r i a l sus a g ebu dg e t 9 . Mi n e r v aCo mp a n ys e l l sas i n g l ep r o d u c t .Bu d g e t e ds a l e sf o rt h ey e a ra r ea n t i c i p a t e dt ob e 6 4 0 , 0 0 0u n i t s .Th ee s t i ma t e db e g i n n i n ga n de n d i n gfi n i s h e dg o o d si n v e n t o r ya r e1 0 8 , 0 0 0 a n d9 0 , 0 0 0 , r e s p e c t i v e l y .Ap r o d u c t i o no f o n eu n i t r e q u i r e st h ef o l l o wi n gma t e r i a l s : Ma t e r i a l L L 0 . 5 0l b . @ P0 . 6 0 Ma t e r i a l MM 1 . 0 0l b . @ P1 . 7 0 Ma t e r i a l NN 1 . 2 0l b . @ P1 . 0 0 Wh a ta r et h er e s p e c t i v ep e s oa mo u n t so fe a c hma t e r i a l t ob eu s e di np r o d u c t i o nd u r i n gt h e y e a r ? Ma t e r i a lL L Ma t e r i a l MM Ma t e r i a l NN A. P1 8 1 , 2 0 0 P1 , 0 2 6 , 8 0 0 P7 2 4 , 8 0 0 B. P1 8 1 , 2 0 0 P1 , 0 2 6 , 8 0 0 P7 4 6 , 4 0 0 C. P1 8 6 , 6 0 0 P1 , 0 5 7 , 4 0 0 P7 4 6 , 4 0 0 D. P1 8 6 , 6 0 0 P1 , 0 5 7 , 4 0 0 P7 2 4 , 8 0 0 Ra wma t e r i a l spu r c ha s e sb u dge t 1 0 .I ft h e r ewe r e3 0 , 0 0 0p o u n d so fr a wma t e r i a lo nh a n do nJ a n u a r y1 ,6 0 , 0 0 0p o u n d sa r e d e s i r e df o ri n v e n t o r ya tDe c e mb e r3 1 ,a n d1 8 0 , 0 0 0p o u n d sa r er e q u i r e df o ra n n u a l Budget i ng B. 1 , 8 0 0p o u n d s p r o d u c t i o n , h o wma n yp o u n d so f r a wma t e r i a l s h o u l db ep u r c h a s e dd u r i n gt h ey e a r ? A.1 5 0 , 0 0 0p o u n d s C.1 2 0 , 0 0 0p o u n d s D.2 1 0 , 0 0 0p o u n d s B.2 4 0 , 0 0 0p o u n d s D.2 , 7 0 0p o u n d s 1 4 1 1 . Si l v e rBo wl Co mp a n yma n u f a c t u r e sas i n g l ep r o d u c t .I t k e e p si t si n v e n t o r yo ffi n i s h e dg o o d s a t 7 5 %t h ec o mi n gmo n t h ’ sb u d g e t e ds a l e s . I t a l s ok e e p si t si n v e n t o r yo f r a wma t e r i a l sa t 5 0 % o ft h ec o mi n gmo n t h ’ sb u d g e t e dp r o d u c t i o n .Ea c hu n i to fp r o d u c tr e q u i r e st wop o u n d so f ma t e r i a l s .T h ep r o d u c t i o nb u d g e ti s ,i nu n i t s :Ma y ,1 , 0 0 0 ;J u n e ,1 , 2 0 0 ;J u l y ,1 , 3 0 0 ;a u g u s t , 1 , 6 0 0 .Ra wma t e r i a l p u r c h a s e si nJ u l ywo u l db e A.1 , 5 2 5p o u n d s C.2 , 5 5 0p o u n d s B. 2 , 9 0 0p o u n d s D.3 , 0 5 0p o u n d s 1 2 . Ea c hu n i t o f fi n i s h e dp r o d u c t u s e s6k i l o g r a mso f r a wma t e r i a l s .Th ep r o d u c t i o na n di n v e n t o r y b u d g e t sf o rMa y2 0 0 7a r ea sf o l l o ws : Be g i n n i n gI n v e n t o r y : F i n i s h e dg o o d s 1 5 , 0 0 0u n i t s Ra wma t e r i a l s 2 1 , 0 0 0k g . Bu d g e t e du n i t s a l e s 1 8 , 0 0 0u n i t s Pl a n n e de n d i n gi n v e n t o r y F i n i s h e dg o o d s 1 1 , 4 0 0u n i t s Ra wma t e r i a l s 2 4 , 4 0 0k g . Du r i n gt h ep r o d u c t i o np r o c e s s , i t i su s u a l l yf o u n dt h a t 1 0 %o f p r o d u c t i o nu n i t sa r es c r a p p e da s d e f e c t i v ea n dt h i sl o s so c c u r sa f t e rt h er a wma t e r i a l sh a v eb e e np l a c e di np r o c e s s . Ho wma n yk i l o g r a mso f r a wma t e r i a l ss h o u l db ep u r c h a s e di nJ u n e ? A.8 9 , 8 0 0 C.9 6 , 0 0 0 B. 9 8 , 4 4 0 D.9 9 , 4 0 0 1 3 . Vi o l e tCo mp a n yma n u f a c t u r e sas i n g l ep r o d u c t .I tk e e p si t si n v e n t o r yo ffi n i s h e dg o o d sa t t wi c et h ec o mi n gmo n t h ’ sb u d g e t e ds a l e s ,i n v e n t o r yo fr a wma t e r i a l sa t1 5 0 %o ft h ec o mi n g mo n t h ’ sb u d g e t e dp r o d u c t i o nr e q u i r e me n t s . Ea c hu n i to fp r o d u c tr e q u i r e st wop o u n d so f ma t e r i a l s .T h ep r o d u c t i o nb u d g e t si nu n i t sc o n s i s t o f t h ef o l l o wi n g : . Ma y 1 , 0 0 0 J u n e 1 , 2 0 0 J u l y 1 , 3 0 0 Au g u s t 1 , 6 0 0 Ra wma t e r i a l p u r c h a s e si nJ u n ewo u l db e A.2 , 6 0 0p o u n d s C.2 , 4 0 0p o u n d s 439 .Sa l e sCo mp a n yi sb u d g e t i n gs a l e so f3 0 0 , 0 0 0u n i t so fi t so n l yp r o d u c tf o rt h ec o mi n gy e a r . Pr o d u c t i o no fo n eu n i to fp r o d u c tr e q u i r e st h r e ep o u n d so fMa t e r i a lQ a n d2p o u n d so f Ma t e r i a l L .I n v e n t o r yu n i t sa t t h eb e g i n n i n go f t h ey e a ra r e : Ac t u a l , J a n . 1 Bu d g e t e d , De c3 1 F i n i s h e dg o o d s 6 0 , 0 0 0 5 0 , 0 0 0 Ma t e r i a l Q 8 0 , 0 0 0 6 0 , 0 0 0 Ma t e r i a l L 8 8 , 0 0 0 9 6 , 0 0 0 Ho wma n yp o u n d so f Ma t e r i a l Qi sSa l e sp l a n n i n gt ob u yd u r i n gt h ec o mi n gy e a r ? A.8 5 0 , 0 0 0 C.8 6 2 , 0 0 0 B.8 9 0 , 0 0 0 D.9 0 8 , 0 0 0 1 5 .St r a maCo mp a n yp r e p a r e si t sb u d g e t so na n n u a l b a s i s .Th ef o l l o wi n gb e g i n n i n ga n de n d i n g i n v e n t o r yu n i t l e v e l sa r ep l a n n e df o rt h efi s c a l y e a ro f J u n e1 , 2 0 0 6t h r o u g hMa y3 1 , 2 0 0 7 . J u n e1 , 2 0 0 6 Ma y3 1 , 2 0 0 7 Ra wma t e r i a l * 4 0 , 0 0 0 5 0 , 0 0 0 Wo r k i n p r o c e s s 1 0 , 0 0 0 1 0 , 0 0 0 F i n i s h e dg o o d s 8 0 , 0 0 0 5 0 , 0 0 0 * T wo( 2 )u n i t so f r a wma t e r i a l a r en e e d e dt op r o d u c ee a c hu n i t o f fi n i s h e dp r o d u c t . I f5 0 0 , 0 0 0fi n i s h e du n i t swe r et ob ema n u f a c t u r e dd u r i n gt h e2 0 0 6 2 0 0 7fi s c a ly e a rb y St r a maCo mp a n y ,t h eu n i t so f r a wma t e r i a l n e e d e dt ob ep u r c h a s e dwo u l db e A.1 , 0 0 0 , 0 0 0u n i t s C.1 , 0 2 0 , 0 0 0u n i t s B.1 , 0 1 0 , 0 0 0u n i t s D. 9 9 0 , 0 0 0u n i t s . Diliman Corporation includes the following quarterly budget for production: 1 6 Qu a r t e r Pr o d u c t i o n F i r s t 6 0 , 0 0 0u n i t s Se c o n d 4 5 , 0 0 0u n i t s T h i r d 4 0 , 0 0 0u n i t s F o u r t h 6 5 , 0 0 0u n i t s Ea c hu n i to fp r o d u c tr e q u i r e s2 . 5k i l o g r a mso fd i r e c tma t e r i a l s .Th ec o mp a n yb e g i n se a c h q u a r t e rwi t hi n v e n t o r yo fd i r e c tma t e r i a l se q u a lt o2 5p e r c e n to ft h et o t a l q u a r t e r ’ sma t e r i a l r e q u i r e me n t s . Wh a t i st h eb u d g e t e dp u r c h a s e so f ma t e r i a l sf o rt h es e c o n dq u a r t e r ? A.1 1 3 , 7 5 0 C. 4 6 , 2 5 0 Budget i ng B.1 0 9 , 3 7 5 D.1 1 2 , 5 0 0 B.P6 9 1 , 0 0 0 I n di r e c tl a bo rc o s t s 1 7 .Na mu c o ,I n c .u s e sfl e x i b l eb u d g e t i n gf o rc o s tc o n t r o l . Du r i n gt h emo n t ho fSe p t e mb e r , Na mu c o ,I n c .p r o d u c e d1 4 , 5 0 0u n i t so ffi n i s h e dg o o d swi t hi n d i r e c tl a b o rc o s t so fP2 5 , 3 7 5 . I t sa n n u a l ma s t e rb u d g e tr e fl e c t sa ni n d i r e c t l a b o rc o s t s , av a r i a b l ec o s t ,o f P3 6 0 , 0 0 0b a s e d o na na n n u a l p r o d u c t i o no f 2 0 0 , 0 0 0u n i t s .I nt h ep r e p a r a t i o no f p e r f o r ma n c ea n a l y s i sf o rt h e mo n t ho f Se p t e mb e r , h o wmu c hfl e x i b l eb u d g e t s h o u l db ea l l o we df o ri n d i r e c t l a b o rc o s t s ? A.P3 0 , 0 0 0 C.P2 5 , 3 7 5 B.P2 9 , 1 6 7 D.P2 6 , 1 0 0 Ca s hr e c e i p t sb ud ge t Sa l e s 1 8 .Ge n e r o u sCo mp a n yb e g a ni t so p e r a t i o n so nJ a n u a r y1o ft h ec u r r e n ty e a r .Bu d g e t e ds a l e s f o rt h efi r s tq u a r t e ra r eP2 4 0 , 0 0 0 ,P3 0 0 , 0 0 0 ,a n dP4 2 0 , 0 0 0 ,r e s p e c t i v e l y ,f o rJ a n u a r y , F e b r u a r ya n dMa r c h .Ge n e r o u sCo mp a n ye x p e c t s2 0 %o f i t ss a l e sc a s ha n dt h er e ma i n d e r o na c c o u n t .Of t h es a l e so na c c o u n t , 7 0 %a r ee x p e c t e dt ob ec o l l e c t e di nt h emo n t ho f s a l e , 2 5 %i nt h emo n t hf o l l o wi n gt h es a l e , a n dt h er e ma i n d e ri nt h ef o l l o wi n gmo n t h . Ho wmu c hs h o u l dGe n e r o u sr e c e i v ef r o ms a l e si nMa r c h ? A.P3 0 4 , 8 0 0 C.P3 8 8 , 8 0 0 B.2 9 4 , 0 0 0 D.P2 9 5 , 2 0 0 Cr e d i t s a l e s 1 9 .Me n d r e zCo mp a n yh a sac o l l e c t i o ns c h e d u l eo f6 0 %d u r i n gt h emo n t ho fs a l e s ,1 5 %t h e f o l l o wi n gmo n t h ,a n d1 5 %s u b s e q u e n t l y .T h et o t a lc r e d i ts a l e si nt h ec u r r e n tmo n t ho f Se p t e mb e rwe r eP8 0 , 0 0 0a n dt o t a lc o l l e c t i o n si nSe p t e mb e rwe r eP5 7 , 0 0 0 .Wh a twe r et h e c r e d i t s a l e si nJ u l y ? A.P9 0 , 0 0 0 C.P4 5 , 0 0 0 B.P3 0 , 0 0 0 D.P3 2 , 0 0 0 Ca s hc o l l e c t i o n s 2 0 .Ob l i g a c i o nCo mp a n yh a sP2 9 9 , 0 0 0i na c c o u n t sr e c e i v a b l eo nJ a n u a r y1 ,2 0 0 6 .Bu d g e t e d s a l e sf o rJ a n u a r ya r eP8 6 0 , 0 0 0 .Ob l i g a c i o ne x p e c t st os e l l 2 0 %o f i t sme r c h a n d i s ef o r c a s h . Oft h er e ma i n i n gs a l e s ,7 5 %a r ee x p e c t e dt ob ec o l l e c t e di nt h emo n t ho fs a l ea n dt h e r e ma i n d e rt h ef o l l o wi n gmo n t h . T h eJ a n u a r yc a s hc o l l e c t i o n sf r o ms a l e sa r e : A.P8 1 5 , 0 0 0 C.P4 7 1 , 0 0 0 D.P9 8 7 , 0 0 0 2 1 .Ad e l Co mp a n yh a st h ef o l l o wi n gs a l e sf o r e c a s t sf o rt h es e l e c t e dt h r e e mo n t hp e r i o di n2 0 0 7 : Mo n t h Sa l e s Ap r i l P1 2 , 0 0 0 Ma y 7 , 0 0 0 J u n e 8 , 0 0 0 Se v e n t yp e r c e n to fs a l e sa r ec o l l e c t e di nt h emo n t ho ft h es a l e ,a n dt h er e ma i n d e ri s c o l l e c t e di nt h ef o l l o wi n gmo n t h . Ac c o u n t sr e c e i v a b l eb a l a n c e( Ap r i l 1 , 2 0 0 7 ) P1 0 , 0 0 0 Ca s hb a l a n c e( Ap r i l 1 , 2 0 0 7 ) 5 , 0 0 0 Mi n i mu mc a s hb a l a n c ei sP5 , 0 0 0 .Ca s hc a nb eb o r r o we di nP1 , 0 0 0i n c r e me n t sf r o mt h e l o c a l b a n k( a s s u men oi n t e r e s t c h a r g e s ) . Ho wmu c hc a s hwo u l db ec o l l e c t e di nJ u n ef r o ms a l e s ? A.P 7 , 7 0 0 C.P 8 , 0 0 0 B.P 8 , 5 0 0 D.P1 0 , 0 0 0 2 2 .Th eAv e l i n aCo mp a n yh a st h ef o l l o wi n gh i s t o r i c a l p a t t e r no ni t sc r e d i t s a l e s . 7 0 p e r c e n t c o l l e c t e di nmo n t ho f s a l e 1 5 p e r c e n t c o l l e c t e di nt h efi r s t mo n t ha f t e rs a l e 1 0 p e r c e n t c o l l e c t e di nt h es e c o n dmo n t ha f t e rs a l e 4 p e r c e n t c o l l e c t e di nt h et h i r dmo n t ha f t e rs a l e 2 p e r c e n t u n c o l l e c t i b l e T h es a l e so no p e na c c o u n th a v eb e e nb u d g e t e df o rt h el a s ts i xmo n t h so f2 0 0 7a r es h o wn b e l o w: J u l y P6 0 , 0 0 0 Au g u s t 7 0 , 0 0 0 Se p t e mb e r 8 0 , 0 0 0 Oc t o b e r 9 0 , 0 0 0 No v e mb e r 1 0 0 , 0 0 0 De c e mb e r 8 5 , 0 0 0 T h ee s t i ma t e dt o t a l c a s hc o l l e c t i o n sd u r i n gt h ef o u r t hc a l e n d a rq u a r t e rf r o ms a l e sma d eo n o p e na c c o u n t d u r i n gt h ef o u r t hc a l e n d a rq u a r t e rwo u l db e A.P1 7 2 , 5 0 0 C.P2 6 5 , 4 0 0 B.P2 3 0 , 0 0 0 D.P2 5 1 , 4 0 0 2 3 .T h eL eAmo r eCo mp a n yh a dt h ef o l l o wi n gb u d g e t e ds a l e sf o rt h efi r s th a l fo ft h ec u r r e n t 440 Budget i ng y e a r : J a n u a r y F e b r u a r y Ma r c h Ap r i l Ma y J u n e Ca s hSa l e s P7 0 , 0 0 0 5 0 , 0 0 0 4 0 , 0 0 0 3 5 , 0 0 0 4 5 , 0 0 0 4 0 , 0 0 0 Sa l e st h r e emo n t h sp r i o rt oc u r r e n t mo n t h 4 % Ca s hd i s c o u n t s( 2 / 3 0 , n e t / 9 0 ) 2 % Do u b t f u l a c c o u n t s 1 % Cr e d i t s a l e s : No v e mb e r–e s t i ma t e d P2 , 0 0 0 , 0 0 0 Oc t o b e r 1 , 8 0 0 , 0 0 0 Se p t e mb e r 1 , 6 0 0 , 0 0 0 Au g u s t 1 , 9 0 0 , 0 0 0 Ho wmu c hi st h ee s t i ma t e dc r e d i t t oAc c o u n t sRe c e i v a b l ea sar e s u l t o f c o l l e c t i o n se x p e c t e d d u r i n gNo v e mb e r ? C.P1 , 7 6 2 , 0 0 0 A.P1 , 7 3 0 , 2 0 0 B.P1 , 7 5 7 , 2 0 0 D.P1 , 8 0 2 , 0 0 0 Cr e d i t Sa l e s P3 4 0 , 0 0 0 1 9 0 , 0 0 0 1 3 5 , 0 0 0 1 2 0 , 0 0 0 1 6 0 , 0 0 0 1 4 0 , 0 0 0 T h ec o mp a n yi si nt h ep r o c e s so f p r e p a r i n gac a s hb u d g e t a n dmu s t d e t e r mi n et h ee x p e c t e d c a s hc o l l e c t i o n sb ymo n t h . T ot h i se n d , t h ef o l l o wi n gi n f o r ma t i o nh a sb e e na s s e mb l e d : Co l l e c t i o n so ns a l e s : 6 0 %i nmo n t ho f s a l e 3 0 %i nmo n t hf o l l o wi n gs a l e 1 0 %i ns e c o n dmo n t hf o l l o wi n gs a l e T h ea c c o u n t sr e c e i v a b l eb a l a n c eo nJ a n u a r y1o ft h ec u r r e n ty e a rwa sP7 0 , 0 0 0 ,o fwh i c h P5 0 , 0 0 0r e p r e s e n t su n c o l l e c t e dDe c e mb e rs a l e sa n dP2 0 , 0 0 0r e p r e s e n t su n c o l l e c t e d No v e mb e r s a l e s . T h et o t a l c a s hc o l l e c t e db yL eAmo r eCo mp a n yd u r i n gt h emo n t ho f J a n u a r ywo u l db e : A.P4 1 0 , 0 0 0 C.P3 4 4 , 0 0 0 B. P2 5 4 , 0 0 0 D.P3 3 1 , 5 0 0 I n c r e a s ei na c c o u n t sr e c e i v a b l e 2 6 .L a z a r oCo mp a n ywi l lo p e nan e ws t o r eo nJ a n u a r y1 .Ba s e do ne x p e r i e n c ef r o mi t so t h e r r e t a i l o u t l e t s , L a z a r oi sma k i n gt h ef o l l o wi n gs a l e sp r o j e c t i o n s : Ca s hSa l e s Cr e d i t Sa l e s J a n u a r y P6 0 0 , 0 0 0 P4 0 0 , 0 0 0 F e b r u a r y 3 0 0 , 0 0 0 5 0 0 , 0 0 0 Ma r c h 4 0 0 , 0 0 0 6 0 0 , 0 0 0 Ap r i l 4 0 0 , 0 0 0 8 0 0 , 0 0 0 L a z a r oe s t i ma t e st h a t7 0 %o ft h ec r e d i ts a l e swi l lb ec o l l e c t e di nt h emo n t hf o l l o wi n gt h e mo n t ho ft h es a l e , wi t ht h eb a l a n c ec o l l e c t e di nt h es e c o n dmo n t hf o l l o wi n gt h es a l e . Ba s e d o nt h e s ed a t a , t h eb a l a n c ei na c c o u n t sr e c e i v a b l eo nJ a n u a r y3 1wi l l b ei n c r e a s e db y A.4 0 0 , 0 0 0 C.P1 2 0 , 0 0 0 B.P2 8 0 , 0 0 0 D.P5 8 0 , 0 0 0 Ac c o u n t sr e c e i v a b l eb a l a n c e 2 4 .Aso fJ a n u a r y1 ,2 0 0 7 ,t h eL i b e r a l Sa l e sCo mp a n yh a da na c c o u n tr e c e i v a b l eo fP5 0 0 , 0 0 0 . T h es a l e sf o rJ a n u a r y ,F e b r u a r y ,a n dMa r c hwe r ea sf o l l o ws :P1 , 2 0 0 , 0 0 0 ,P1 , 4 0 0 , 0 0 0a n d P1 , 5 0 0 , 0 0 0 , r e s p e c t i v e l y .Of e a c hmo n t h ’ ss a l e s , 8 0 %i so na c c o u n t .6 0 %o f a c c o u n t s a l e s i sc o l l e c t e di nt h emo n t ho f s a l e , wi t hr e ma i n i n g4 0 %c o l l e c t e di nt h ef o l l o wi n gmo n t h . Wh a t i st h ea c c o u n t sr e c e i v a b l eb a l a n c ea so f Ma r c h3 1 , 2 0 0 7 ? A.P7 2 0 , 0 0 0 C.P5 8 7 , 2 0 0 B.P4 8 0 , 0 0 0 D.P6 0 0 , 0 0 0 Ca s hd i s bu r s e me n t s 2 7 .Ca s c a d e sCo mp a n y ,ame r c h a n d i s i n gfi r m,i sp r e p a r i n gi t sma s t e rb u d g e ta n dh a sg a t h e r e d t h ef o l l o wi n gd a t at oh e l pb u d g e t c a s hd i s b u r s e me n t s : Bu d g e t e dd a t a : Co s t o f g o o d ss o l d P1 , 6 8 0 , 0 0 0 De s i r e dd e c r e a s ei ni n v e n t o r i e s 7 0 , 0 0 0 De s i r e dd e c r e a s ei nAc c o u n t sPa y a b l e 1 5 0 , 0 0 0 Al lo ft h ea c c o u n t sp a y a b l e sa r ef o ri n v e n t o r yp u r c h a s e sa n da l li n v e n t o r yi t e msa r e p u r c h a s e do na c c o u n t .Wh a ta r et h ee s t i ma t e dc a s hd i s b u r s e me n t sf o ri n v e n t o r i e sf o rt h e Cr e d i t t oa c c o u n t sr e c e i v a b l e 2 5 .I r o n ma nCo mp a n yi sp r e p a r i n gi t sc a s hb u d g e tf o rt h emo n t he n d i n gNo v e mb e r3 0 .T h e f o l l o wi n gi n f o r ma t i o np e r t a i n st oI r o n ma n ’ sp a s t c o l l e c t i o ne x p e r i e n c ef r o mi t sc r e d i t s a l e s : Cu r r e n t mo n t h ’ ss a l e s 1 2 % Pr i o rmo n t h ’ ss a l e s 7 5 % Sa l e st womo n t h sp r i o rt oc u r r e n t mo n t h 6 % 441 Budget i ng b u d g e t p e r i o d ? A.P1 , 4 6 0 , 0 0 0 B.P1 , 6 0 0 , 0 0 0 a . b . Ea c hmo n t h ’ ss a l e sa r eb i l l e do nt h el a s t d a yo f t h emo n t h . Cu s t o me r sa r ea l l o we da3p e r c e n td i s c o u n ti fp a y me n ti sma d ewi t h i n1 0 d a y sa f t e rt h eb i l l i n gd a t e .Re c e i v a b l e sa r eb o o k e dg r o s s . c . Si x t yp e r c e n to ft h eb i l l i n g sa r ec o l l e c t e dwi t h i nt h ed i s c o u n tp e r i o d ,t we n t y fi v ep e r c e n t a r ec o l l e c t e db yt h ee n do f t h emo n t h , n i n ep e r c e n t a r ec o l l e c t e db yt h ee n d o f t h es e c o n dmo n t h , a n ds i xp e r c e n t a r ec o n s i d e r e de n t i r e l yu n c o l l e c t i b l e . C.P1 , 9 0 0 , 0 0 0 D.P1 , 7 6 0 , 0 0 0 2 8 .Al b a t r o s sCo mp a n ys t a r t e di t sc o mme r c i a l o p e r a t i o n so nSe p t e mb e r3 0o ft h ec u r r e n ty e a r . Pr o j e c t e dma n u f a c t u r i n gc o s t sf o rt h efi r s tt h r e emo n t h so fo p e r a t i o n sa r eP1 , 5 6 8 , 0 0 0 , P1 , 9 5 2 , 0 0 0 ,a n dP2 , 1 7 6 , 0 0 0 ,r e s p e c t i v e l y . De p r e c i a t i o n ,i n s u r a n c e ,a n dp r o p e r t yt a x e s r e p r e s e n tP2 8 8 , 0 0 0o ft h ee s t i ma t e d ma n u f a c t u r i n gc o s t s . I n s u r a n c e wa sp a i do n Se p t e mb e r3 0 , a n dp r o p e r t yt a x e swi l l b ep a i di nJ u l yn e x t y e a r .Se v e n t y fi v ep e r c e n to f t h e r e ma i n d e ro f t h ema n u f a c t u r i n gc o s t sa r ee x p e c t e dt ob ep a i di nt h emo n t hi nwh i c ht h e ya r e i n c u r r e d ,wi t ht h eb a l a n c et ob ep a i di nt h ef o l l o wi n gmo n t h . Th ec a s hp a y me n t sf o r ma n u f a c t u r i n gc o s t si nt h emo n t ho f No v e mb e ra r e : A.P1 , 5 6 8 , 0 0 0 C.P1 , 6 6 4 , 0 0 0 B.P1 , 9 5 2 , 0 0 0 D.P1 , 8 5 6 , 0 0 0 En d i ngc a s hb a l a nc e 2 9 .Al b a n i aCo mp a n ye x p e c t si t sJ u n es a l e st ob eP3 0 0 , 0 0 0 ,wh i c hi s2 5 %h i g h e rt h a ni t sMa y s a l e s . Pu r c h a s e swe r eP2 0 0 , 0 0 0i nMa ya n da r ee x p e c t e dt ob eP2 4 0 , 0 0 0i nJ u n e . Al l s a l e s a r eo nc r e d i ta n da r ec o l l e c t e da sf o l l o ws :8 0 %i nt h emo n t ho ft h es a l ea n d2 0 %i nt h e f o l l o wi n gmo n t h .Al l p a y me n t si nt h emo n t ho fs a l e sa r eg i v e n2 %d i s c o u n t .Si x t yp e r c e n to f p u r c h a s e sa r ep a i di nt h emo n t ho fp u r c h a s et ot a k ea d v a n t a g eo fp u r c h a s et e r mo f1 / 1 0 , n / 4 0 .Th er e ma i n i n ga mo u n ti sp a i di nt h ef o l l o wi n gmo n t h .Th eb e g i n n i n gc a s hb a l a n c eo n J u n e1i sP2 0 , 0 0 0 . Th ee n d i n gc a s hb a l a n c eo nJ u n e3 0wo u l db e : A.P6 4 , 1 6 0 C.P8 0 , 6 4 0 B.P7 3 , 0 0 0 D.P8 5 , 4 4 0 Pu r c h a s e s : 1 . F i f t yf o u rp e r c e n to fa l lp u r c h a s e sa n ds e l l i n g ,g e n e r a l ,a n da d mi n i s t r a t i v ee x p e n s e s a r ep a i di nt h emo n t hp u r c h a s e da n dt h er e ma i n d e ri nt h ef o l l o wi n gmo n t h . 2 . Ea c hmo n t h ’ su n i t so fe n d i n gi n v e n t o r yi se q u a l t oo n eh u n d r e dt h i r t yp e r c e n to ft h e n e x t mo n t h ’ su n i t so f s a l e s . 3 . T h ec o s t o f e a c hu n i t o f i n v e n t o r yi sP2 0 0 . 4 . Se l l i n g ,g e n e r a l ,a n da d mi n i s t r a t i v ee x p e n s e s ,o fwh i c hP2 0 , 0 0 0i sd e p r e c i a t i o n ,a r e e q u a l t ofi f t e e np e r c e n t o f t h ec u r r e n t mo n t h ’ ss a l e s . Ac t u a l a n dp r o j e c t e ds a l e sa r ea sf o l l o ws : No v e mb e r De c e mb e r J a n u a r y F e b r u a r y Ma r c h Ap r i l UNI T S 1 1 , 8 0 0 1 2 , 1 0 0 1 1 , 9 0 0 1 1 , 4 0 0 1 2 , 0 0 0 1 2 , 2 0 0 3 0 PE SOS P3 , 5 4 0 , 0 0 0 3 , 6 3 0 , 0 0 0 3 , 5 7 0 , 0 0 0 3 , 4 2 0 , 0 0 0 3 , 6 0 0 , 0 0 0 3 , 6 6 0 , 0 0 0 .Th er e s p e c t i v ea mo u n t so fb u d g e t e dp u r c h a s e sf o rt h emo n t h so fJ a n u a r ya n dF e b r u a r y a r e : C.P2 , 2 5 0 , 0 0 0a n dP2 , 4 3 6 , 0 0 0 A.P2 , 4 1 8 , 0 0 0a n dP2 , 3 6 0 , 0 0 0 B.P2 , 3 8 0 , 0 0 0a n dP2 , 2 8 0 , 0 0 0 D.P3 , 5 7 0 , 0 0 0a n dP3 , 4 2 0 , 0 0 0 Co mp r e he n s i v e Qu e s t i o nNo s . 3 0t h r o u g h3 3a r eb a s e do nt h ef o l l o wi n gi n f o r ma t i o n : Ap o l l oMe r c h a n d i s e ra s k sy o u rs e r v i c e st od e v e l o pc a s ha n do t h e rb u d g e ti n f o r ma t i o nf o rt h e fi r s t q u a r t e ro f 2 0 0 7 .I nDe c e mb e r3 1 , t h es t o r eh a dt h ef o l l o wi n gb a l a n c e : Ca s h P 5 5 , 0 0 0 Ac c o u n t sr e c e i v a b l e 4 , 3 7 0 , 0 0 0 I n v e n t o r i e s 3 , 0 9 4 , 0 0 0 Ac c o u n t sp a y a b l e 1 , 3 3 0 , 5 5 0 3 1 .Th eb u d g e t e dc a s hd i s b u r s e me n t sf o rt h emo n t ho f F e b r u a r ya r e : A.P2 , 9 2 9 , 0 0 0 C.P2 , 9 4 9 , 0 0 0 D.P2 , 8 5 3 , 7 9 0 B.P2 , 8 7 3 , 7 9 0 3 2 .Th ea mo u n t o f c a s hc o l l e c t e df r o ms a l e sd u r i n gt h emo n t ho f J a n u a r yi s : A.P3 , 3 3 8 , 7 6 0 C.P3 , 4 0 4 , 1 0 0 B.P3 , 5 5 1 , 1 6 0 D.P3 , 5 5 6 , 5 6 0 T h ef o l l o wi n gi n f o r ma t i o na r er e l e v a n t t o2 0 0 7o p e r a t i o n s : Sa l e s : 442 Budget i ng 3 4 .Ho wmu c hwi l l b ep a i di nt h emo n t ho f J a n u a r yf o rt h ep u r c h a s eo f ma t e r i a l s ? A.P2 7 , 2 0 0 C.P1 3 7 , 8 5 6 B. P1 1 7 , 2 0 0 D.P3 3 , 6 0 0 3 3 .Th en u mb e ro f u n i t st ob ep u r c h a s e dd u r i n gt h emo n t ho f Ma r c hi s : A.1 5 , 8 6 0 C.1 2 , 0 0 0 B.1 2 , 2 6 0 D.1 5 , 6 0 0 3 5 Ra j a hEn t e r p r i s e si sag r o wi n gr e t a i l e ro f h o mec a r ep r o d u c t s .Du r i n gt h efi r s t f o u rmo n t h so f t h e f o l l o wi n gy e a r , i t f o r e c a s t st h ef o l l o wi n gs a l e sa n dp u r c h a s e s : . Ho wmu c hd o e sAt l a n t ap l a nt od i s b u r s ei nt h emo n t ho f J u n e ? C.P2 0 7 , 2 0 0 A.P4 1 , 6 0 0 B. P1 0 0 , 0 0 0 D.P1 1 7 , 2 0 0 Qu e s t i o nNo s . 3 6t h r o u g h3 8a r eb a s e do nt h ef o l l o wi n g : Su p e rSa l e s ’ a c t u a l s a l e sa n dp u r c h a s e sf o rAp r i l a n dMa ya r es h o wnh e r ea l o n gwi t hf o r e c a s t e d s a l e sa n dp u r c h a s e sf o r J u n et h r o u g hSe p t e mb e r . Sa l e s Pu r c h a s e s J a n u a r y P7 , 2 0 0 , 0 0 0 P4 , 2 0 0 , 0 0 0 F e b r u a r y 6 , 6 0 0 , 0 0 0 4 , 8 0 0 , 0 0 0 Ma r c h 6 , 0 0 0 , 0 0 0 3 , 6 0 0 , 0 0 0 Ap r i l 7 , 8 0 0 , 0 0 0 5 , 4 0 0 , 0 0 0 Ra j a hc o l l e c t s7 0 %o fs a l e si sc o l l e c t i o nd u r i n gt h emo n t ho fs a l e ,2 0 %t h ef o l l o wi n gmo n t ha n d 9 %i nt h es e c o n dmo n t h .1 %o f s a l e sa r ed e e me du n c o l l e c t i b l e . Ap r i l ( Ac t u a l ) Ma y( Ac t u a l ) J u n e( f o r e c a s t ) J u l y( f o r e c a s t ) Au g u s t ( f o r e c a s t ) Se p t e mb e r( f o r e c a s t ) I no r d e rt of u l l ya v a i l o f t h e2 %d i s c o u n t ,Ra j a hp a y sa l l t h ep u r c h a s e sb yt h et e n t ho ft h emo n t h f o l l o wi n gt h emo n t ho f p u r c h a s e . Sa l e sf o rt h emo n t ho fMa ya r ee x p e c t e dt ob eP6 , 6 0 0 , 0 0 0a n dt h ea mo u n to fp u r c h a s e sa r e P6 , 0 0 0 , 0 0 0 .Op e r a t i n ge x p e n s e st ob ep a i dd u r i n gt h emo n t ho f Ma ywi l l b eP1 , 4 4 0 , 0 0 0a n dt h e c a s hb a l a n c eb yMa y1i sP2 , 2 0 0 , 0 0 0 . P1 2 0 , 0 0 0 1 6 0 , 0 0 0 1 8 0 , 0 0 0 2 4 0 , 0 0 0 Ma y J u n e J u l y Pu r c h a s e s P2 0 0 , 0 0 0 2 2 0 , 0 0 0 2 1 0 , 0 0 0 2 4 0 , 0 0 0 3 2 0 , 0 0 0 2 3 0 , 0 0 0 T h ec o mp a n yma k e s1 0p e r c e n t o f i t ss a l e sf o rc a s ha n d9 0p e r c e n t o nc r e d i t .Of t h ec r e d i t s a l e s , 3 0p e r c e n t a r ec o l l e c t e di nt h emo n t ha f t e rt h es a l ea n d7 0p e r c e n t a r ec o l l e c t e dt womo n t h sa f t e r . Su p e rSa l e sp a y sf o r4 5p e r c e n to fi t sp u r c h a s e si nt h emo n t ha f t e rp u r c h a s ea n d5 5p e r c e n tt wo mo n t h sa f t e r . T h eAt l a n t aCo r p o r a t i o nh a sf o r e c a s t t h ef o l l o wi n gs a l e sf o rt h efi r s t s e v e nmo n t h so f t h ey e a r : J a n u a r y F e b r u a r y Ma r c h Ap r i l Sa l e s P3 9 0 , 0 0 0 4 2 0 , 0 0 0 3 9 0 , 0 0 0 3 5 0 , 0 0 0 4 2 0 , 0 0 0 4 1 0 , 0 0 0 L a b o re x p e n s ee q u a l s1 5p e r c e n t o f t h ec u r r e n tmo n t h ' ss a l e s . Ge n e r a l o v e r h e a de x p e n s ee q u a l s P1 0 , 0 0 0p e rmo n t h . I n t e r e s t p a y me n t so f P3 5 , 0 0 0a r ed u ei nJ u n ea n dSe p t e mb e r . Ac a s hd i v i d e n d o fP2 5 , 0 0 0i ss c h e d u l e dt ob ep a i di nJ u n e .T a xp a y me n t so fP3 0 , 0 0 0a r ed u ei nJ u n ea n d Se p t e mb e r . T h e r ei sas c h e d u l e dp u r c h a s ef o rc a s ho f a ne q u i p me n t , P2 9 0 , 0 0 0i nSe p t e mb e r . P1 2 0 , 0 0 0 2 0 0 , 0 0 0 2 2 0 , 0 0 0 Mo n t h l yma t e r i a l p u r c h a s e sa r es e t e q u a l t o2 0p e r c e n to f f o r e c a s t e ds a l e sf o rt h en e x tmo n t h .Of t h et o t a lma t e r i a lc o s t s ,4 0p e r c e n ta r ep a i di nt h emo n t ho fp u r c h a s ea n d6 0p e r c e n ti nt h e f o l l o wi n gmo n t h . L a b o r c o s t swi l l r u nP6 0 , 0 0 0p e r mo n t h , a n dfi x e do v e r h e a di sP3 0 , 0 0 0p e rmo n t h . I n t e r e s tp a y me n t so nt h ed e b twi l lb eP4 5 , 0 0 0f o rb o t hMa r c ha n dJ u n e .F i n a l l y ,At l a n t a ’ ss a l e s f o r c ewi l l r e c e i v ea3p e r c e n tc o mmi s s i o no nt o t a l s a l e sf o rt h efi r s ts i xmo n t h so ft h ey e a r ,t ob e p a i do nJ u n e3 0 . 443 Su p e rSa l e s ’e n d i n gc a s hb a l a n c ei nMa yi sP2 5 , 0 0 0 .T h emi n i mu md e s i r e dc a s hb a l a n c ei s P2 0 , 0 0 0 .T h ema x i mu md e s i r e dc a s hb a l a n c ei sP5 0 , 0 0 0 .Ex c e s sc a s h( a b o v eP5 0 , 0 0 0 )i su s e d t ob u yma r k e t a b l es e c u r i t i e s .Ma r k e t a b l es e c u r i t i e sa r es o l db e f o r eb o r r o wi n gf u n d si nc a s eo fa c a s hs h o r t f a l l ( l e s st h a nP2 0 , 0 0 0 ) . 3 6 . Du r i n gt h emo n t ho f J u n e , Su p e rSa l e se x p e c t st or e c e i v ec a s hf r o ms a l e sa mo u n t i n gt o : A.P6 0 6 , 0 0 0 C.P3 9 8 , 1 0 0 Budget i ng B. P4 0 8 , 9 0 0 c u t , t h r e a d e d , a n dfi n i s h e d . L a s t y e a rr a wma t e r i a l c o s t swe r eP5 2p e r1 , 0 0 0f a s t e n e r s , b u t Ms . T e e h a sj u s tb e e nn o t i fi e dt h a tma t e r i a lc o s t sh a v er i s e n ,e ff e c t i v eJ a n u a r y1 ,t oP6 0p e r1 , 0 0 0 f a s t e n e r s .T h eI n g oCo r p o r a t i o nu s e sFI F Oi n v e n t o r ya c c o u n t i n g .L a b o rc o s t sa r er e l a t i v e l y c o n s t a n t a t P2 0p e rt h o u s a n df a s t e n e r s , s i n c ewo r k e r sa r ep a i do nap i e c e wo r kb a s i s . Ov e r h e a di s a l l o c a t e da t P1 0p e rt h o u s a n du n i t s , a n ds e l l i n ga n da d mi n i s t r a t i v ee x p e n s ei s2 0p e r c e n t o f s a l e s . L a b o r e x p e n s ea n do v e r h e a da r ed i r e c t c a s ho u t fl o wsp a i di nt h emo n t hi n c u r r e d , wh i l ei n t e r e s t a n d t a x e sa r ep a i dq u a r t e r l y . D.P3 5 9 , 1 0 0 3 7 .T h ec u mu l a t i v ea mo u n t o f ma r k e t a b l es e c u r i t i e sp u r c h a s e da so f J u l y3 1a mo u n t st o : A.P1 2 6 , 0 0 0 C.P1 4 3 , 3 0 0 B. 1 3 2 , 5 0 0 D.P0 3 8 .T h ea mo u n t o f l o a nt ob eo b t a i n e dt oma i n t a i nab a l a n c eo f P5 0 , 0 0 0c a s ha so f Se p t e mb e r3 0 wi l l b e : A.P1 0 9 . 4 C.P 9 . 4 B. P5 9 . 4 D.P 0 . 0 Qu e s t i o nNo s . 3 9t h r o u g h4 5a r eb a s e do nt h ef o l l o wi n gd a t a : T h eI n g oCo r p o r a t i o nma k e ss t a n d a r d s i z e2 i n c hf a s t e n e r s ,wh i c hi ts e l l sf o rP1 5 5p e rt h o u s a n d . I r i n eT e e ,t h ema j o rs t o c k h o l d e r ,ma n a g e st h ei n v e n t o r ya n dfi n a n c e so ft h ec o mp a n y .Sh e e s t i ma t e ss a l e sf o r t h ef o l l o wi n gmo n t h st ob e : J a n u a r y F e b r u a r y Ma r c h Ap r i l Ma y P2 6 3 , 5 0 0 P1 8 6 , 0 0 0 P2 1 7 , 0 0 0 P3 1 0 , 0 0 0 P3 8 7 , 5 0 0 ( 1 , 7 0 0 , 0 0 0f a s t e n e r s ) ( 1 , 2 0 0 , 0 0 0f a s t e n e r s ) ( 1 , 4 0 0 , 0 0 0f a s t e n e r s ) ( 2 , 0 0 0 , 0 0 0f a s t e n e r s ) ( 2 , 5 0 0 , 0 0 0f a s t e n e r s ) T h ec o r p o r a t i o nu s u a l l yma i n t a i n sami n i mu mc a s hb a l a n c eo f P2 5 , 0 0 0 , a n di t p u t si t se x c e s sc a s h i n t oma r k e t a b l es e c u r i t i e s .T h ea v e r a g et a xr a t ei s4 0p e r c e n t ,a n dt h ec o mp a n yu s u a l l yp a y so u t 5 0p e r c e n t o f n e t i n c o mei nd i v i d e n d st os t o c k h o l d e r s .Ma r k e t a b l es e c u r i t i e sa r es o l db e f o r ef u n d s a r eb o r r o we dwh e nac a s hs h o r t a g ei sf a c e d .I g n o r et h ei n t e r e s to na n ys h o r t t e r mb o r r o wi n g s . I n t e r e s t o nt h el o n g t e r md e b t i sp a i di nMa r c h , a sa r et a x e sa n dd i v i d e n d s . Aso f y e a r e n d , t h eI n g oCo r p o r a t i o nb a l a n c es h e e t wa sa sf o l l o ws : I n g oCo r p o r a t i o n Ba l a n c eSh e e t De c e mb e r 3 1 , 2 0 0 6 L a s ty e a rI n g oCo r p o r a t i o n ' ss a l e swe r eP1 7 5 , 0 0 0i nNo v e mb e ra n dP2 3 2 , 5 0 0i nDe c e mb e r ( 1 , 5 0 0 , 0 0 0f a s t e n e r s ) . Ms . T e ei sp r e p a r i n gf o rame e t i n gwi t hPe n i n s u l aBa n k i n gCo r p o r a t i o nt oa r r a n g et h efi n a n c i n gf o r t h efi r s tq u a r t e r .Ba s e do nh e rs a l e sf o r e c a s ta n dt h ef o l l o wi n gi n f o r ma t i o ns h eh a sp r o v i d e d ,y o u h a v et op r e p a r eamo n t h l yc a s hb u d g e t , amo n t h l ya n dq u a r t e r l yp r of o r mai n c o mes t a t e me n t , ap r o f o r maq u a r t e r l yb a l a n c es h e e t , a n da l l n e c e s s a r ys u p p o r t i n gs c h e d u l e sf o rt h efi r s t q u a r t e r . Pa s th i s t o r ys h o wst h a tI n g oCo r p o r a t i o nc o l l e c t s5 0p e r c e n to fi t sa c c o u n t sr e c e i v a b l ei nt h e n o r ma l3 0 d a yc r e d i tp e r i o d( t h emo n t ha f t e rt h es a l e )a n dt h eo t h e r5 0p e r c e n ti n6 0d a y s( t wo mo n t h sa f t e rt h es a l e ) .I tp a y sf o ri t sma t e r i a l s3 0d a y sa f t e rr e c e i p t .I ng e n e r a l ,Ms .T e el i k e st o k e e pat wo mo n t hs u p p l yo fi n v e n t o r yi na n t i c i p a t i o no fs a l e s .I n v e n t o r ya tt h eb e g i n n i n go f De c e mb e r wa s2 , 6 0 0 , 0 0 0u n i t s . ( T h i swa sn o t e q u a l t oh e r d e s i r e dt wo mo n t hs u p p l y . ) 3 9 ASSET S Cu r r e n t a s s e t s : Ca s h Ac c o u n t sr e c e i v a b l e I n v e n t o r y T o t a l c u r r e n t a s s e t s Pl a n t a n de q u i p me n t , n e t o f a c c u mu l a t e dd e p r e c i a t i o no f P2 0 0 , 0 0 0 T o t a l As s e t s P 3 0 , 0 0 0 3 2 0 , 0 0 0 2 3 7 , 8 0 0 5 8 7 , 8 0 0 8 0 0 , 0 0 0 P1 , 3 8 7 , 8 0 0 L I ABI L I T I ESANDST OCKHOL DERS’ EQUI TY Ac c o u n t sp a y a b l e L o n g t e r md e b t , 8 % Co mmo ns t o c k Re t a i n e de a r n i n g s T o t a l L i a b i l i t i e sa n dSt o c k h o l d e r s ’ Eq u i t y P 9 3 , 6 0 0 4 0 0 , 0 0 0 5 0 4 , 2 0 0 3 9 0 , 0 0 0 P1 , 3 8 7 , 8 0 0 .T h eb u d g e t e dp r o d u c t i o nr e s p e c t i v et oe a c hmo n t ho f t h efi r s t q u a r t e ro f t h ec o mi n gy e a ra r e : A.1 , 4 0 0 , 0 0 0 ; 2 , 0 0 0 , 0 0 0 ; 2 , 5 0 0 , 0 0 0 C.2 , 5 0 0 , 0 0 0 ; 2 , 0 0 0 , 0 0 0 ; 1 , 4 0 0 , 0 0 0 T h ema j o rc o s to fp r o d u c t i o ni st h ep u r c h a s eo fr a wma t e r i a l si nt h ef o r mo fs t e e l r o d s , wh i c ha r e 444 Budget i ng B. 1 , 4 0 0 , 0 0 0 ; 2 , 5 0 0 , 0 0 0 ; 2 , 0 0 0 , 0 0 0 D.2 , 0 0 0 , 0 0 0 ; 1 , 4 0 0 , 0 0 0 ; 2 , 5 0 0 , 0 0 0 u n i f o r ml yt h r o u g h o u tt h emo n t h .T h es a l e sv a l u eo fs h i p me n t sf o rMa ya n dt h ef o r e c a s t sf o rt h e n e x t f o u r mo n t h sf o l l o w: Ma y( a c t u a l ) P5 0 0 , 0 0 0 J u n e 6 0 0 , 0 0 0 J u l y 7 0 0 , 0 0 0 Au g u s t 7 0 0 , 0 0 0 Se p t e mb e r 4 0 0 , 0 0 0 Ru s s o np u r c h a s e sme r c h a n d i s ef o rr e s a l et ome e tt h ec u r r e n tmo n t h ’ ss a l e sd e ma n da n dt o ma i n t a i nad e s i r e dmo n t h l ye n d i n gi n v e n t o r yo f2 5 %o ft h en e x tmo n t h ’ ss a l e s .Al l p u r c h a s e sa r e o nc r e d i twi t ht e r mso fn e t / 3 0 .Ru s s o np a y sf o r5 0 %o famo n t h ’ sp u r c h a s e si nt h emo n t ho f p u r c h a s ea n d5 0 %i nt h emo n t hf o l l o wi n gt h ep u r c h a s e . 4 0 .T h ea mo u n t o f a c c o u n t sp a y a b l ep a i di nMa r c hf o r t h ep u r c h a s eo f ma t e r i a l si s : A.P1 5 0 , 0 0 0 C.P1 0 4 , 0 0 0 B. P1 2 0 , 0 0 0 D.P1 3 0 , 0 0 0 4 1 .T h ee x p e c t e dc a s hc o l l e c t i o n so na c c o u n t sr e c e i v a b l ei nt h emo n t ho f F e b r u a r ya r e : A.P2 2 4 , 7 5 0 C.P9 3 , 0 0 0 B. P2 4 8 , 0 0 0 D.P1 8 6 , 0 0 0 4 2 .T h ea mo u n t o f a c c o u n t sr e c e i v a b l eo u t s t a n d i n ga so f Ma r c h3 1 , 2 0 0 7i s : C.P3 1 0 , 0 0 0 A.P2 1 7 , 0 0 0 B. P2 2 4 , 7 5 0 D.P1 0 8 , 5 0 0 4 6 . Ho wmu c hc a s hc a nRu s s o np l a nt oc o l l e c t i nSe p t e mb e r f r o ms a l e sma d ei nAu g u s t ? A.P3 3 7 , 4 0 0 C.P4 0 0 , 4 0 0 B. P3 4 3 , 0 0 0 D.P2 8 0 , 0 0 0 4 3 .T h ec o s t o f g o o d ss o l df o r t h efi r s t q u a r t e ro f t h ec o mi n gy e a ra mo u n t st o : A.P3 6 3 , 8 0 0 C.P4 2 6 , 4 0 0 B. P4 5 3 , 6 0 0 D.P3 7 3 , 4 0 0 4 7 .T h eb u d g e t e dp e s ov a l u eo f Ru s s o n ’ si n v e n t o r yo nAu g u s t 3 1wi l l b e A.P1 1 0 , 0 0 0 C.P1 1 2 , 0 0 0 B. P8 0 , 0 0 0 D.P1 0 0 , 0 0 0 4 4 .T h et o t a l c a s ha n dma r k e t a b l es e c u r i t i e sa so f J a n u a r y3 1wi l l b e : A.P4 5 , 4 5 0 C.P9 1 , 8 0 0 B. P2 5 , 0 0 0 D.P5 4 , 4 5 0 4 8 . Ho wmu c hc a s hc a nRu s s o np l a nt oc o l l e c t f r o ma c c o u n t sr e c e i v a b l ed u r i n gJ u l y ? A.P5 7 4 , 0 0 0 C.P6 1 9 , 0 0 0 B. P6 6 2 , 6 0 0 D.P6 0 8 , 6 0 0 4 5 .T h ee x p e c t e dn e t i n c o med u r i n gt h efi r s t q u a r t e r o f t h ec o mi n gy e a r i s : A.P9 1 , 0 8 0 C.P9 6 , 8 4 0 B. P1 6 1 , 4 0 0 D.P1 5 1 , 8 0 0 Qu e s t i o nNo s . 4 6t h r o u g h4 8a r eb a s e do nt h eRu s s o nCo r p o r a t i o n ,ar e t a i l e rwh o s es a l e sa r ea l l ma d eo nc r e d i t .Sa l e sa r eb i l l e dt wi c emo n t h l y , o nt h e1 0 t ho f t h emo n t hf o rt h el a s t h a l f o f t h ep r i o r mo n t h ’ ss a l e s ,a n do nt h e2 0 t ho ft h emo n t hf o rt h efi r s th a l fo ft h ec u r r e n tmo n t h ’ ss a l e s .T h e t e r mso fa l ls a l e sa r e2 / 1 0 ,n e t3 0 . Ba s e du p o np a s te x p e r i e n c e ,t h ec o l l e c t i o no fa c c o u n t s r e c e i v a b l ei sa sf o l l o ws : Wi t h i nt h ed i s c o u n t p e r i o d Ont h e3 0 t hd a y Un c o l l e c t i b l e 8 0 % 1 8 % 2 % Ru s s o n ’ sa v e r a g ema r k u po ni t sp r o d u c t si s2 0 %o f t h es a l e sp r i c e .Al l s a l e sa n dp u r c h a s e so c c u r 445 1 . An s we r :A T h ea mo u n to ffi x e dc o s t si no p e r a t i n gb r a n c h e s ’1 0wa r e h o u s e si sP4 0 0 , 0 0 0( t h efi x e dc o s tl i n ei n t e r c e p t st h e v e r t i c a l a x i s ) . T o t a l o p e r a t i n gc o s t s P2 , 9 0 0 , 0 0 0 L e s sfi x e dc o s t s 4 0 0 , 0 0 0 T o t a l v a r i a b l ec o s t s( 1 0wa r e h o u s e s ) P2 , 5 0 0 , 0 0 0 V a r i a b l ec o s t sp e rb r a n c h :P2 , 5 0 0 , 0 0 0 1 0 P2 5 0 , 0 0 0 2 . An s we r :A Co s t o f u n i t ss o l d ( 0 . 6 5xP8 0 0 , 0 0 0 ) Ad dDe s i r e de n d i n gi n v e n t o r y T o t a l c o s t o f g o o d sa v a i l a b l ef o rs a l e De d u c t Be g i n n i n gi n v e n t o r y Bu d g e t e dp u r c h a s e s P5 2 0 , 0 0 0 1 4 0 , 0 0 0 6 6 0 , 0 0 0 1 3 0 , 0 0 0 P5 3 0 , 0 0 0 . An s we r :A Co s t o f g o o d ss o l d Ad dEn d i n gI n v e n t o r y T o t a l a v a i l a b l ef o rs a l e De d u c t Be g i n n i n gi n v e n t o r y Bu d g e t e dp u r c h a s e s , F e b r u a r y P4 5 0 , 0 0 0 2 4 0 , 0 0 0 P6 9 0 , 0 0 0 2 2 5 , 0 0 0 P4 6 5 , 0 0 0 3 4 5 6 7 P7 5 0 , 0 0 0x0 . 6 P8 0 0 , 0 0 0x0 . 6x0 . 5 P4 5 0 , 0 0 0x0 . 5 . An s we r :D Co s t o f s a l e s Ad dDe s i r e de n d i n gi n v e n t o r y T o t a l a v a i l a b l ef o rs a l e De d u c t Bu d g e t e dp u r c h a s e s Be g i n n i n gi n v e n t o r y . An s we r :A T o t a l p a y me n t sf o rp u r c h a s e si nJ u n e De d u c t p a y me n t sa p p l i c a b l et op u r c h a s eo f : J u n e ( P1 0 0 , 0 0 0x0 . 6 ) Ma y ( P2 0 0 , 0 0 0x0 . 3 0 ) Pa y me n t sa p p l i c a b l et oAp r i l p u r c h a s e Cr e d i t p u r c h a s ei nAp r i l :P2 0 , 0 0 0 0 . 1 0 . An s we r :C Bu d g e t e ds a l e s , F i r s t Qu a r t e r Ad dRe q u i r e dEn d i n gF i n i s h e dg o o d s : 3 0 %x1 6 0 , 0 0 0 T o t a l u n i t sr e q u i r e d L e s sBe g i n n i n gF i n i s h e dg o o d s Bu d g e t e dp r o d u c t i o ni nu n i t s . An s we r :C Sa l e sf o rt h r e e mo n t hp e r i o d : J u l y Au g u s t 4 0 0 , 0 0 0x1 . 0 5 Se p t e mb e r 4 2 0 , 0 0 0x1 . 0 5 T o t a l P1 2 0 , 0 0 0 4 2 , 0 0 0 1 6 2 , 0 0 0 1 0 0 , 0 0 0 P6 2 , 0 0 0 P1 4 0 , 0 0 0 P6 0 , 0 0 0 6 0 , 0 0 0 1 2 0 , 0 0 0 P2 0 , 0 0 0 P2 0 0 , 0 0 0 1 2 0 , 0 0 0u n i t s 4 8 , 0 0 0u n i t s 1 6 8 , 0 0 0u n i t s 3 6 , 0 0 0u n i t s 1 3 2 , 0 0 0u n i t s 4 0 0 , 0 0 0 4 2 0 , 0 0 0 4 4 1 , 0 0 0 1 , 2 6 1 , 0 0 0 I n v e n t o r y , Se p t e mb e r3 0 T o t a l Re q u i r e me n t s L e s sJ u l yI n v e n t o r y Bu d g e t e dPr o d u c t i o n 8 ( 4 4 1 , 0 0 0x1 . 0 5x0 . 8 ) . An s we r :C Be g i n n i n gI n v e n t o r y ( 8 0 0 0x3 . 5 ) Re q u i r e dPu r c h a s e s Di r e c t Ma t e r i a l sUs e df o rPr o d u c t i o n ( 8 0 0 0x3 ) De s i r e dEn d i n gI n v e n t o r y 3 7 0 , 4 4 0 1 , 6 3 1 , 4 4 0 3 0 0 , 0 0 0 1 , 3 3 1 , 4 4 0 2 8 , 0 0 0 8 , 0 0 0 ( 2 4 , 0 0 0 ) 1 2 , 0 0 0 9 . An s we r :C L L MMNNBu d g e t e dp r o d u c t i o n 6 2 2 , 0 0 0 6 2 2 , 0 0 0 6 2 2 , 0 0 0 Re q u i r e d ma t e r i a l sp e ru n i to fp r o d u c t 0 . 5 0 1 . 0 0 1 . 2 Ma t e r i a l s r e q u i r e d 3 1 1 , 0 0 0 6 2 2 , 0 0 0 7 4 6 , 4 0 0 Un i tc o s t P0 . 6 0 P1 . 7 0 P1 . 0 0Pe s oa mo u n t so fma t e r i a l su s e db yu n i t s p r o d u c e d P1 8 6 , 6 0 0 P1 , 0 5 7 , 4 0 0 P7 4 6 , 4 0 0 Bu d g e t e ds a l e si nu n i t s 6 4 0 , 0 0 0 Ad dF i n i s h e dg o o d s , e n d 9 0 , 0 0 0 T o t a l 7 3 0 , 0 0 0 De d u c t F i n i s h e dg o o d s , b e g i n n i n g 1 0 8 , 0 0 0 Bu d g e t e dp r o d u c t i o n 6 2 2 , 0 0 0 10 11 12 . An s we r :D Re q u i r e dp o u n d sb yp r o d u c t i o n En d i n gr a wma t e r i a l sr e q u i r e d Be g i n n i n gr a wma t e r i a l s Bu d g e t e dp u r c h a s e s . An s we r :B Ma t e r i a l sr e q u i r e db yJ u n ep r o d u c t i o n1 , 3 0 0x2 Ad dEn d i n gr a wma t e r i a l si n v e n t o r y1 , 6 0 0x2x0 . 5 T o t a l ma t e r i a l sr e q u i r e d De d u c t Be g i n n i n gma t e r i a l si n v e n t o r y1 , 3 0 0x2x0 . 5 Ma t e r i a l st ob ep u r c h a s e d . An s we r :D Bu d g e t e ds a l e s Ad dF i n i s h e dg o o d si n v e n t o r y , e n d T o t a l De d u c t F i n i s h e dg o o di n v e n t o r y , b e g i n n i n g Bu d g e t e dp r o d u c t i o n Ra wma t e r i a l sr e q u i r e db yp r o d u c t i o n ( 1 4 , 4 0 0x6 0 . 9 ) De s i r e dRa wma t e r i a l si n v e n t o r ye n d T o t a l De d u c t Ra wma t e r i a l si n v e n t o r y , b e g i n n i n g Bu d g e t e dp u r c h a s eo f r a wma t e r i a l s 1 8 0 , 0 0 0 6 0 , 0 0 0 (3 0 , 0 0 0 ) 2 1 0 , 0 0 0 2 , 6 0 0 1 , 6 0 0 4 , 2 0 0 1 , 3 0 0 2 , 9 0 0 1 8 , 0 0 0 1 1 , 4 0 0 2 9 , 4 0 0 1 5 , 0 0 0 1 4 , 4 0 0 6 , 0 0 0 2 4 , 4 0 0 1 2 0 , 4 0 0 2 1 , 0 0 0 9 9 , 4 0 0 13 14 . An s we r :D Ra wma t e r i a l sr e q u i r e db yJ u n ep r o d u c t i o n : Ad d :En d i n gma t e r i a l si n v e n t o r y T o t a l ma t e r i a l sr e q u i r e d De d u c t Be g i n n i n gma t e r i a l i n v e n t o r y Bu d g e t e dma t e r i a l sp u r c h a s e 1 , 2 0 0x2 1 , 3 0 0x2. 1 . 5 2 , 4 0 0x1 . 5 . An s we r :A Bu d g e t e ds a l e s L e s sd e c r e a s ei nF i n i s h e dg o o d si n v e n t o r y Bu d g e t e dp r o d u c t i o n Ma t e r i a l Qr e q u i r e db yp r o d u c t i o n 2 9 0 , 0 0 0x3 L e s sd e c r e a s ei nMa t e r i a l Qi n v e n t o r y 6 0 , 0 0 0–8 0 , 0 0 0 Bu d g e t e dp u r c h a s ei np o u n d s , Ma t e r i a l Q 15 16 . An s we r :B Ma t e r i a l sr e q u i r e db yp r o d u c t i o n I n c r e a s e di nma t e r i a l si n v e n t o r y Pu r c h a s e s 5 0 0 , 0 0 0x2 ( 5 0 , 0 0 0–4 0 , 0 0 0 ) . An s we r :B Ma t e r i a l sr e q u i r e db y2 n dQu a r t e r ’ sp r o d u c t i o n 4 5 , 0 0 0x2 . 5k g s . Ad d :Ma t e r i a l si n v e n t o r y , e n d : 4 0 , 0 0 0x2 . 5x 0 . 2 5 T o t a l ma t e r i a l sr e q u i r e d L e s s :Ma t e r i a l si n v e n t o r y , b e g i n n i n g : 1 1 2 , 5 0 0x0 . 2 5 T o t a l b u d g e t p u r c h a s e si nk i l o g r a ms 2 , 4 0 0 3 , 9 0 0 6 , 3 0 0 3 , 6 0 0 2 , 7 0 0 3 0 0 , 0 0 0 1 0 , 0 0 0 2 9 0 , 0 0 0 8 7 0 , 0 0 0 2 0 , 0 0 0 8 5 0 , 0 0 0 1 , 0 0 0 , 0 0 0 1 0 , 0 0 0 1 , 0 1 0 , 0 0 0 1 1 2 , 5 0 0 2 5 . 0 0 0 1 3 7 , 5 0 0 2 8 , 1 2 5 1 0 9 , 3 7 5 17 . An s we r :D Un d e rfl e x i b l eb u d g e t , a n a l y s i ss h o u l db eb a s e do na c t u a l l e v e l a c h i e v e d . I n d i r e c t l a b o rc o s t p e ru n i t ( P3 6 0 , 0 0 0 2 0 0 , 0 0 0u n i t s ) P1 . 8 0 F l e x i b l eb u d g e t a l l o wa n c e : 1 4 , 5 0 0u n i t sxP1 . 8 0 P2 6 , 1 0 0 18 . An s we r :C Ca s hs a l e s( Ma r c h ) 0 . 2xP4 2 0 , 0 0 0 Co l l e c t i o n so f a c c o u n t s a l e s : Ma r c hs a l e s : ( P4 2 0 , 0 0 0x0 . 8x0 . 7 ) F e b r u a r ys a l e s : ( P3 0 0 , 0 0 0x0 . 8x0 . 2 5 ) J a n u a r ys a l e s : ( P2 4 0 , 0 0 0x0 . 8x. 0 5 ) T o t a l c a s hf r o ms a l e s 19 20 . An s we r :B T o t a l c a s hc o l l e c t i o n s De d u c t i o n sc o l l e c t i o n so nSe p t e mb e rs a l e s ( P8 0 , 0 0 0x0 . 6 ) Co l l e c t i o n sa p p l i c a b l et oJ u l ya n dAu g u s t s a l e s Cr e d i t s a l e si nJ u l y :P9 , 0 0 0 2 0 . 1 5 . An s we r :D Co l l e c t i o n sf r o m: J a n u a r ys a l e s ( P8 6 0 , 0 0 0x0 . 8x0 . 7 5 ) P8 4 , 0 0 0 2 3 5 , 2 0 0 6 0 , 0 0 0 9 , 6 0 0 P3 8 8 , 8 0 0 P5 7 , 0 0 0 4 8 , 0 0 0 P9 , 0 0 0 P3 0 , 0 0 0 P5 1 6 , 0 0 0 De c e mb e rs a l e s( J a n u a r y1Ac c o u n t s ) Co l l e c t i o n so f c r e d i t s a l e s Ca s hs a l e s ( P8 6 0 , 0 0 0x0 . 2 ) T o t a l c a s hr e c e i v e d 21 22 23 . An s we r :A Co l l e c t i o n ss a l e so f : J u n e : Ma y : T o t a l c o l l e c t i o n sf r o ms a l e s P8 , 0 0 0x0 . 7 P7 , 0 0 0x0 . 3 . An s we r :B Oc t o b e r9 0 , 0 0 0x. 9 5 No v e mb e r1 0 0 , 0 0 0x. 8 5 De c e mb e r8 5 , 0 0 0x. 7 0 F o u r t hq u a r t e rs a l e sc o l l e c t e di nf o u r t hq u a r t e r . An s we r :D Ca s hs a l e s Co l l e c t i o n sf r o ma c c o u n t s a l e s : J a n u a r y ( P3 4 0 , 0 0 0x0 . 6 0 ) De c e mb e r ( P5 0 , 0 0 0x3 0 / 4 0 ) No v e mb e r T o t a l c a s hr e c e i p t si nJ a n u a r y 2 9 9 , 0 0 0 8 1 5 , 0 0 0 1 7 2 , 0 0 0 P9 8 7 , 0 0 0 P5 , 6 0 0 2 , 1 0 0 P7 , 7 0 0 P8 5 , 5 0 0 8 5 , 0 0 0 5 9 , 5 0 0 P2 3 0 , 0 0 0 P7 0 , 0 0 0 2 0 4 , 0 0 0 3 7 , 5 0 0 2 0 , 0 0 0 P3 3 1 , 5 0 0 24 . An s we r :B T h eb a l a n c eo f Ac c o u n t sRe c e i v a b l e , b a s e do nt h ec o l l e c t i o np a t t e r nf o rL i b e r a l Sa l e sCo mp a n y , e q u a l s4 0p e r c e n t o f c r e d i t s a l e sf o rt h a t mo n t h : P1 , 5 0 0 , 0 0 0x0 . 8x0 . 4=P4 8 0 , 0 0 0 25 . An s we r :C Gr o s sr e c e i v a b l ec o l l e c t e dmo n t h ’ ss a l e s No v e mb e r 2 , 0 0 0 , 0 0 0x. 1 2 Oc t o b e r 1 , 8 0 0 , 0 0 0x. 7 5 Se p t e mb e r 1 , 6 0 0 , 0 0 0x. 0 6 Au g u s t 1 , 9 0 0 , 0 0 0x. 0 4 T o t a l c r e d i t P2 4 0 , 0 0 0 1 , 3 5 0 , 0 0 0 9 6 , 0 0 0 7 6 , 0 0 0 P1 , 7 6 2 , 0 0 0 26 . An s we r :A T h eb a l a n c eo fAc c o u n t sRe c e i v a b l ea so fJ a n u a r y3 1 ,i t sfi r s tmo n t ho fo p e r a t i o n s ,wi l li n c r e a s eb yP4 0 0 , 0 0 0 b e c a u s et h efi r s t c o l l e c t i o no na c c o u n t s a l e swi l l b ei nF e b r u a r y . Ho we v e r ,aq u e s t i o no fh o wmu c hi n c r e a s ei nAc c o u n t sRe c e i v a b l ei nF e b r u a r ywi l l e q u a l t ot h ed i ff e r e n c eb e t we e n t h eF e b r u a r yc r e d i t s a l e sa n d7 0 %o f J a n u a r ys a l e s . 27 . An s we r :D Co s t o f g o o d ss o l d De d u c t d e s i r e dd e c r e a s ei ni n v e n t o r i e s Bu d g e t e dp u r c h a s e s Ad dd e c r e a s ei nAc c o u n t sPa y a b l e Bu d g e t e dp a y me n t sf o rp u r c h a s e s P1 , 6 8 0 , 0 0 0 7 0 , 0 0 0 P1 , 6 1 0 , 0 0 0 1 5 0 , 0 0 0 P1 , 7 6 0 , 0 0 0 28 29 . An s we r :A No v e mb e rc o s t s Oc t o b e rc o s t s T o t a l d i s b u r s e me n t s ( P1 , 9 5 2 , 0 0 0–P2 8 8 , 0 0 0 )x0 . 7 5 ( P1 , 5 6 8 , 0 0 0–P2 8 8 , 0 0 0 )x0 . 2 5 ) . An s we r :C Be g i n n i n gCa s h Ad d : Ca s hc o l l e c t e do nJ u n e ' ss a l e s Ca s hc o l l e c t e do nMa y ' ss a l e s T o t a l P3 0 3 , 2 0 0 L e s s : Ca s hp a i do nJ u n e ' sp u r c h a s e s Ca s hp a i do nMa y ' sp u r c h a s e s En d i n gc a s hb a l a n c e P1 , 2 4 8 , 0 0 0 3 2 0 , 0 0 0 P1 , 5 6 8 , 0 0 0 P2 0 , 0 0 0 ( P3 0 0 , 0 0 0x. 8x. 9 8 ) 2 3 5 , 2 0 0 ( ( P3 0 0 , 0 0 0 / 1 . 2 5 )x. 2 )4 8 , 0 0 0 2 8 3 , 2 0 0 ( P2 4 0 , 0 0 0x. 6x. 9 9 ) 1 4 2 , 5 6 0 ( P2 0 0 , 0 0 0x. 4 ) 8 0 , 0 0 0 2 2 2 , 5 6 0 P8 0 , 6 4 0 30 . An s we r :C J a n u a r y F e b r u a r y Bu d g e t e d s a l e s 1 1 , 9 0 0 1 1 , 4 0 0 Ad d : En d i n g i n v e n t o r y( 1 3 0 %) 1 4 , 8 2 0 1 5 , 6 0 0 T o t a l 2 6 , 7 2 0 2 7 , 0 0 0 L e s s : Be g i n n i n gi n v e n t o r y 1 5 , 4 7 0 1 4 , 8 2 0 Bu d g e t e dp u r c h a s e s( u n i t s ) 1 1 , 2 5 0 1 2 , 1 8 0 Un i tp u r c h a s ep r i c e 2 0 0 2 0 0 Bu d g e t e dp e s op u r c h a s e s P2 , 2 5 0 , 0 0 0 P2 , 4 3 6 , 0 0 0 Bu d g e t e di n v e n t o r i e s : De c e mb e r3 1 1 3 0 %x1 1 , 9 0 0 1 5 , 4 7 0 J a n u a r y3 1 1 3 0 %x1 1 , 4 0 0 1 4 , 8 2 0 F e b r u a r y2 8 1 3 0 %x1 2 , 0 0 0 1 5 , 6 0 0 Ma r c h3 1 1 3 0 %x1 2 , 2 0 0 1 5 , 8 6 0 31 32 33 34 . An s we r :D Pa y me n t sf o r : F e b r u a r yp u r c h a s e s 5 4 %xP2 , 4 3 6 , 0 0 0 J a n u a r yp u r c h a s e s 4 6 %xP2 , 2 5 0 , 0 0 0 T o t a l p a y me n t sf o rp u r c h a s e s Se l l i n g , g e n e r a l a n da d mi n i s t r a t i v ee x p e n s e s : F e b r u a r y : [ ( P3 , 4 2 0 , 0 0 0x0 . 1 5 )–P2 0 , 0 0 0 ] 0 . 5 4 J a n u a r y : [ ( P3 , 5 7 0 , 0 0 0x0 . 1 5 )–P2 0 , 0 0 0 ] 0 . 4 6 T o t a l c a s hd i s b u r s e me n t s . An s we r :A Bi l l i n g so f De c e mb e r3 1 : Co l l e c t i o n swi t h3 %d i s c o u n t P3 , 6 3 0 , 0 0 0x0 . 6x0 . 9 7 Co l l e c t i o n se n do f J a n u a r y P3 , 6 3 0 , 0 0 0x0 . 2 5 Bi l l i n g so f No v e mb e r3 0 : P3 , 5 4 0 , 0 0 0x0 . 0 9 T o t a l c o l l e c t i o n s . An s we r :B Bu d g e t e dMa r c hs a l e s Ad d :En d i n gi n v e n t o r yu n i t s T o t a l u n i t sr e q u i r e d L e s s :Be g i n n i n gi n v e n t o r yu n i t s Bu d g e t e dp u r c h a s e si nu n i t s , Ma r c h . An s we r :A P1 , 3 1 5 , 4 4 0 1 , 0 3 5 , 0 0 0 P2 , 3 5 0 , 4 4 0 2 6 6 , 2 2 0 2 3 7 , 1 3 0 P2 , 8 5 3 , 7 9 0 P2 , 1 1 2 , 6 6 0 9 0 7 , 5 0 0 3 1 8 , 6 0 0 P3 , 3 3 8 , 7 6 0 1 2 , 0 0 0 1 5 , 8 6 0 2 7 , 8 6 0 1 5 , 6 0 0 1 2 , 2 6 0 35 36 37 38 Pa y me n t sf o rp u r c h a s e si nt h emo n t ho f : De c e mb e r ( 0 . 2xP1 2 0 , 0 0 0x0 . 6 ) J a n u a r y ( 0 . 2xP1 6 0 , 0 0 0x0 . 4 ) T o t a l J a n u a r yd i s b u r s e me n t sf o rp u r c h a s e s P1 4 , 4 0 0 1 2 , 8 0 0 P2 7 , 2 0 0 . An s we r :C Pa y me n t sf o rp u r c h a s e s : Ma yp u r c h a s e ( 0 . 2xP2 0 0 , 0 0 0x0 . 6 ) J u n ep u r c h a s e ( 0 . 2xP2 2 0 , 0 0 0x0 . 4 ) T o t a l L a b o r c o s t s F i x e dOv e r h e a d I n t e r e s t p a y me n t s Co mmi s s i o n( 0 . 0 3xP1 , 0 2 0 , 0 0 0 ) T o t a l d i s b u r s e me n t s P2 4 , 0 0 0 1 7 , 6 0 0 4 1 , 6 0 0 6 0 , 0 0 0 3 0 , 0 0 0 4 5 , 0 0 0 3 0 , 6 0 0 P2 0 7 , 2 0 0 . An s we r :C J u n ec a s hs a l e s( P3 9 0 , 0 0 0x0 . 1 ) Co l l e c t i o n sf r o ma c c o u n t s a l e s : Ap r i l s a l e s ( P3 9 0 , 0 0 0x0 . 9x0 . 7 ) Ma ys a l e s ( P4 2 0 , 0 0 0x0 . 9x0 . 3 ) T o t a l c a s hr e c e i p t s , J u n e . An s we r :B Ma r k e t a b l es e c u r i t i e sp u r c h a s e do n : J u n e J u l y Cu mu l a t i v ep u r c h a s eo f MS P3 9 , 0 0 0 2 4 5 , 7 0 0 1 1 3 , 4 0 0 P3 9 8 , 1 0 0 P 5 , 6 0 0 1 2 6 , 9 0 0 P1 3 2 , 5 0 0 . An s we r :A Ca s hBu d g e t ( P’ 0 0 0 ) J u n e J u l y Au g Se p t Ca s hr e c e i p t s P3 9 8 . 1 P4 0 4 . 9 P3 8 2 . 2 P3 7 4 . 9 Ca s hd i s b u r s e me n t s3 6 7 . 52 7 8 . 02 9 6 . 57 0 2 . 5 Ne t c a s hi n fl o w ( o u t fl o w) 3 0 . 61 2 6 . 98 5 . 7 ( 3 2 7 . 6 ) Be g i n n i n gc a s hb a l a n c e2 5 . 05 0 . 05 0 . 05 0 . 0 Cu mu l a t i v ec a s hb a l a n c e5 5 . 6 1 7 6 . 91 3 5 . 7 (2 7 7 . 6 ) M/ Ss o l d( p u r c h a s e d )- 5 . 6 1 2 6 . 9 -8 5 . 72 1 8 . 2 Ca s hl o a n 0 . 0 0 . 0 0 . 01 0 9 . 4 Ca s h b a l a n c e , e n d P5 0 . 0 P5 0 . 0 P5 0 . 0 P5 0 . 0 Ca s hRe c e i p t s( P’ 0 0 0 ) J u n e J u l y Au g Se p t Ac c o u n t s a l e s( 9 0 %) P3 5 1 . 0 P3 1 5 . 0 P3 7 8 . 0 P3 6 9 . 0 Ca s hs a l e s P3 9 . 0 P3 5 . 0 P4 2 . 0 P4 1 . 0 Co l l e c t i o no f a c c o u n t sF i r s t mo n t h( 3 0 %)2 4 5 . 71 0 5 . 39 4 . 51 1 3 . 4 Se c o n dmo n t h( 7 0 %)1 1 3 . 42 6 4 . 62 4 5 . 7 2 2 0 . 5 T o t a l P3 9 8 . 1 P4 0 4 . 9 P3 8 2 . 2 P3 7 4 . 9 Ca s hPa y me n t s( P’ 0 0 0 ) J u n e J u l y Au g Se p t Pu r c h a s e s P2 1 0 . 0 P2 4 0 . 0 P3 2 0 . 0 P2 3 0 . 0 F i r s t mo n t h( 4 5 %) P9 9 . 0 P9 4 . 5 P1 0 8 . 0 P1 4 4 . 0 Se c o n dmo n t h( 5 5 %) 1 1 0 . 01 2 1 . 01 1 5 . 51 3 2 . 0T o t a l p u r c h a s e sp a i d2 0 9 . 02 1 5 . 52 2 3 . 52 7 6 . 0 L a b o r5 8 . 55 2 . 56 3 . 0 6 1 . 5 Ge n e r a l o v e r h e a d1 0 . 01 0 . 01 0 . 01 0 . 0 I n t e r e s t3 5 . 03 5 . 0 Ca s hd i v i d e n d2 5 . 0 T a x e s3 0 . 03 0 . 0 Pu r c h a s eo f e q u i p t . 2 9 0 . 0 T o t a l p a y me n t s P3 6 7 . 5 P2 7 8 . 0 P2 9 6 . 5 P7 0 2 . 5 39 . An s we r :A Bu d g e t e dPr o d u c t i o n J a n u a r y F e b r u a r y Ma r c h T o t a l Sa l e s 1 , 7 0 0 , 0 0 0 1 , 2 0 0 , 0 0 0 1 , 4 0 0 , 0 0 0 4 , 3 0 0 , 0 0 0 I n v e n t o r y , e n d 2 , 6 0 0 , 0 0 0 3 , 4 0 0 , 0 0 0 4 , 5 0 0 , 0 0 0 4 , 5 0 0 , 0 0 0 T o t a l 4 , 3 0 0 , 0 0 0 4 , 6 0 0 , 0 0 0 5 , 9 0 0 , 0 0 0 8 , 8 0 0 , 0 0 0 I n v e n t o r y , b e g . ( 2 , 9 0 0 , 0 0 0 ( 2 , 6 0 0 , 0 0 0 ( 3 , 4 0 0 , 0 0 0 ( 2 , 9 0 0 , 0 0 0 Bu d g e t e dp r o d u c t i o n 1 , 4 0 0 , 0 0 0 2 , 0 0 0 , 0 0 0 2 , 5 0 0 , 0 0 0 5 , 9 0 0 , 0 0 0 40 . An s we r :B Pa y me n t sf o rPu r c h a s e s : J a n u a r y ( De c e mb e rp u r c h a s e s-1 , 8 0 0 , 0 0 0x0 . 0 5 2 ) F e b r u a r y ( J a n u a r yp u r c h a s e s–1 , 4 0 0 , 0 0 0x0 . 0 6 ) Ma r c h ( F e b r u a r yp u r c h a s e s–2 , 0 0 0 , 0 0 0x0 . 0 6 ) T o t a l f o rt h eq u a r t e r 41 42 43 P9 3 , 6 0 0 8 4 , 0 0 0 1 2 0 , 0 0 0 P2 9 7 , 6 0 0 . An s we r :B Bu d g e t e dCo l l e c t i o n so nAc c o u n t sRe c e i v a b l e J a n u a r y F e b r u a r y Ma r c h T o t a l No v e mb e rs a l e s 8 7 , 5 0 0 8 7 , 5 0 0 De c e mb e rs a l e s 1 1 6 , 2 5 0 1 1 6 , 2 5 0 2 3 2 , 5 0 0 J a n u a r y s a l e s 1 3 1 , 7 5 0 1 3 1 , 7 5 0 2 6 3 , 5 0 0 F e b r u a r ys a l e s 9 3 , 0 0 0 9 3 , 0 0 0 T o t a l 2 0 3 , 7 5 0 2 4 8 , 0 0 0 2 2 4 , 7 5 0 6 7 6 , 5 0 0 . An s we r :C Amo n t h ’ ss a l e si sc o l l e c t e d5 0p e r c e n t e a c hi nt h efi r s t a n ds e c o n dmo n t h .T h e r e f o r e , t h ea c c o u n t sr e c e i v a b l e o u t s t a n d i n ga so f Ma r c h3 1i n c l u d e sMa r c h ’ ss a l e sa swe l l a s5 0p e r c e n t o f F e b r u a r ys a l e s . F e b r u a r y ’ sa c c o u n t s( P1 8 6 , 0 0 0x0 . 5 ) P9 3 , 0 0 0 Ma r c h ’ ss a l e s 2 1 7 , 0 0 0 Ou t s t a n d i n ga c c o u n t sr e c e i v a b l e , Ma r c h3 1 P3 1 0 , 0 0 0 . An s we r :A Cu r r e n t u n i t c o s t p e r1 , 0 0 0 Ma t e r i a l L a b o r Ov e r h e a d T o t a l P5 2 2 0 1 0 P8 2 Eff e c t i v eJ a n u a r y1 ,2 0 0 7 ,t h ep r i c eo fma t e r i a l swi l l b er a i s e dt oP6 0 .T h eu n i tc o s tf o r2 0 0 7p r o d u c t i o nwi l l b eP9 0 . Si n c et h es a l e so fJ a n u a r ya n dF e b r u a r yc o mef r o mDe c e mb e rp r o d u c t i o n ,o n l yt h eMa r c hs a l e swi l l h a v ec o s to fP9 0 p e rt h o u s a n d . J a n u a r ya n dF e b r u a r yc o s t o f g o o d ss o l d Ma r c h Co s t o f g o o d ss o l d( fi r s t q u a r t e r ) 44 ( 1 , 7 0 0+1 , 2 0 0 )xP8 2 1 , 4 0 0xP9 0 P2 3 7 , 8 0 0 1 2 6 , 0 0 0 P3 6 3 , 8 0 0 . An s we r :A J a n u a r y F e b r u a r y Ma r c h Ca s hc o l l e c t i o n s 2 0 3 , 7 5 0 2 4 8 , 0 0 0 2 2 4 , 7 5 0 Ca s hd i s b u r s e me n t s Pa y me n t sf o r ma t e r i a l s 9 3 , 6 0 0 8 4 , 0 0 0 1 2 0 , 0 0 0L a b o re x p e n s e s 2 8 , 0 0 0 4 0 , 0 0 0 5 0 , 0 0 0 Ov e r h e a d 1 4 , 0 0 0 2 0 , 0 0 0 2 5 , 0 0 0 Se l l i n g& a d mi n i s t r a t i v e 5 2 , 7 0 0 3 7 , 2 0 0 4 3 , 4 0 0I n t e r e s t 8 , 0 0 0T a x e s 6 4 , 5 6 0 Di v i d e n d s . .4 8 , 4 2 0 T o t a l d i s b u r s e me n t s 1 8 8 , 3 0 0 1 8 1 , 2 0 0 3 5 9 , 3 8 0 Ne t Ca s hI n fl o w( Ou t fl o w) 1 5 , 4 5 0 6 6 , 8 0 0 ( 1 3 4 , 6 3 0 ) Ca s hBa l a n c e , Be g i n n i n g 3 0 , 0 0 0 2 5 , 0 0 0 2 5 , 0 0 0 Cu mu l a t i v ec a s hb a l a n c e 4 5 , 4 5 09 1 , 8 0 0 ( 1 0 9 , 6 3 0 ) Ma r k e t a b l e s e c u r i t i e s 2 0 , 4 5 0 6 6 , 8 0 0 (8 7 , 2 5 0 ) Cu mu l a t i v eMS2 0 , 4 5 0 8 7 , 2 5 0 Bo r r o wi n g s 0 04 7 , 3 8 0 Ca s hBa l a n c e , En d 2 5 , 0 0 0 1 1 2 , 2 5 0 2 5 , 0 0 0 45 . An s we r :C Pr o f o r maI n c o meSt a t e me n t J a n u a r y F e b r u a r y Ma r c h T o t a l Sa l e s 2 6 3 , 5 0 0 1 8 6 , 0 0 0 2 1 7 , 0 0 0 6 6 6 , 5 0 0 Co s t o f g o o d ss o l d 1 3 9 , 4 0 0 9 8 , 4 0 0 1 2 6 , 0 0 0 3 6 3 , 8 0 0 Gr o s s p r o fi t 1 2 4 , 1 0 0 8 7 , 6 0 0 9 1 , 0 0 0 3 0 2 , 7 0 0 Se l l i n ge x p e n s e s , 2 0 %5 2 , 7 0 0 3 7 , 2 0 0 4 3 , 4 0 0 1 3 3 , 3 0 0 Op e r a t i n g i n c o me 7 1 , 4 0 0 5 0 , 4 0 0 4 7 , 6 0 0 1 6 9 , 4 0 0 I n t e r e s t e x p e n s e 2 , 6 6 7 2 , 6 6 7 2 , 6 6 6 8 , 0 0 0 I n c o meb e f o r e t a x 6 8 , 7 3 3 4 7 , 7 3 3 4 4 , 9 3 4 1 6 1 , 4 0 0 I n c o met a x , 4 0 %2 7 , 4 9 3 1 9 , 0 9 3 1 7 , 9 7 4 6 4 , 5 6 0 Ne t i n c o me 4 1 , 2 4 0 2 8 , 6 4 0 2 6 , 9 6 0 9 6 , 8 4 0 46 . An s we r :A Au g u s t s a l e s Bi l l e d8 / 2 0 P3 5 0 , 0 0 0x1 8 % P6 3 , 0 0 0 Bi l l e d9 / 1 0 P3 5 0 , 0 0 0x8 0 %x9 8 % Co l l e c t i o n si nSe p t o f Au gs a l e s 47 . An s we r :B Ru s s o np r o v i d e s2 5p e r c e n t o f n e x t mo n t h ’ sq u a n t i t ys a l e s . 2 5 %xP4 0 0 , 0 0 0x8 0 %=P8 0 , 0 0 0 48 . An s we r :D Ma ys a l e sb i l l e dJ u n e1 02 5 0 , 0 0 0 x 1 8 % J u n eSa l e s : Bi l l e dJ u n e2 0 3 0 0 , 0 0 0x1 8 % Bi l l e dJ u l y1 0 3 0 0 , 0 0 0x. 8 0z. 9 8 J u l ys a l e s Bi l l e dJ u l y2 0 P3 5 0 , 0 0 0x. 8 0x. 9 8 J u l yCo l l e c t i o n s 2 7 4 , 4 0 0 P3 3 7 , 4 0 0 P4 5 , 0 0 0 5 4 , 0 0 0 2 3 5 , 2 0 0 P2 7 4 , 4 0 0 P6 0 8 , 6 0 0