Question

• 60 percent of sales for credit and collections occur after thirty days.
• A $5000 CD matures in March.
• Monthly fixed disbursements are $10,000.
• Variable disbursements are 35 percent of sales and are based on next month's sales.
• A tax payment of $9,500 is due in January.
• The ending cash in December is $15,000.
• Sales in December were $60,000.
• April sales are $30,000

	January	February	March
Sales	$50,000	$45,000	$35,000
Cash Sales
Collections
Other Receipts
Total Cash Receipts
Variable Disbursements
Fixed Disbursements
Other Disbursements
Total Cash Disbursements
New Change During the Month
Beginning Cash
Ending Cash

Question 43

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What is beginning cash for January?

Select one:

a. 35,750

b. 15,000

c. 0

d. 56,000

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Question 44

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What are total cash receipts for January?

Select one:

a. 38,000

b. 50,000

c. 22,500

d. 56,000

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Question 45

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What are February's cash sales?

Select one:

a. 45,000

b. 18,000

c. 27,000

d. none of the above

Answer 1

Answer

43)Beginning Balance for January is $15,000 (option b)

44)Total cash receipts for January is $56,000 (option d)

45) February's cash sales is $18,000

Working note

	January	February	March
Sales	$        50,000	$        45,000	$        35,000
Cash Sales	$        20,000	$        18,000	$        14,000
Collections	$        36,000	$        30,000	$        27,000
Other Receipts			$          5,000
Total Cash Receipts	$        56,000	$        48,000	$        46,000
Variable Disbursements	$        15,750	$        12,250	$        10,500
Fixed Disbursements	$        10,000	$        10,000	$        10,000
Other Disbursements	$          9,500
Total Cash Disbursements	$        35,250	$        22,250	$        20,500
Net Change During the month	$        20,750	$        25,750	$        25,500
Beginning Cash	$        15,000	$        35,750	$        61,500
Ending Cash	$        35,750	$        61,500	$        87,000