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90. Weisbro and Sons purchases its inventory one quarter prior to the quarter of sale. The purchase price is 60% of the sales price. The accounts payable period is 60 days. The accountspayable balance at the beginning of quarter one is $27,500. What is the amount of the expected disbursements for quarter two given the following expected quarterly sales? Assumethat a year has 360 days.A. $19,200B. $20,400C.$22,000D. $25,200E. $32,000Quarter 2 disbursements = [(60 90) $34,000 .60] + [(30 90) $42,000 .60] = $22,000Difficulty level: ChallengeTopic: CASH DISBURSEMENTSType: PROBLEMS91. Birds Unlimited has a 45 day accounts payable period. The firm has expected sales of $1,800, $2,100, $2,400 and $2,800, respectively, by quarter for the next calendar year. The cost of goods sold for a quarter is equal to 65% of the next quarter sales. What is the amount of the projected cash disbursements for accounts payable for Quarter 2 of the next year? Assume that a year has 360 days. Disbursement = [(45 90) (.65 $2,100)] + [(45 90) (.65 $2,400)] = $1,462.50Difficulty level: ChallengeTopic: CASH DISBURSEMENTSType: PROBLEMS26-70
Chapter 26 - Short-Term Finance and Planning92. Your firm sells $2,000 worth of goods in December, $1,700 worth in January, $1,500 in February and $1,600 in March. Your cost is 60% of the retail price. You have a receivables period of 30 days and a payables period of 45 days. You buy your products one month prior toselling them. Which one of the following statements is correct given this information? March disbursements = (45 90) (.60 $1,600) + (45 90) (.60 $1,500) = $930Difficulty level: ChallengeTopic: CASH DISBURSEMENTSType: PROBLEMS93. As of the beginning of the quarter, you have a cash balance of $250. During the quarter you pay your suppliers $310. Your accounts receivable collections are $420. You also pay an interest payment of $30 and a tax bill of $180. In addition, you borrow $75. What is your cashbalance at the end of the quarter? Cash balance = $250 - $310 + $420 - $30 - $180 + $75 = $225Difficulty level: ChallengeTopic: CASH BALANCEType: PROBLEMS26-71
Chapter 26 - Short-Term Finance and Planning94. On April 1st, your firm had a beginning cash balance of $280. Your sales for March were $460 and your April sales were $510. During April you had cash expenses of $130 and payments on your accounts payable of $210. Your accounts receivable period is 30 days. What is your firm's beginning cash balance on May 1st? A.$400B. $430C. $450D. $860E. $910Cash balance = $280 - $130 - $210 + $460 = $400Difficulty level: MediumTopic: CASH BALANCEType: PROBLEMS