Weisbro and Sons purchases its inventory one quarter prior to the quarter of

# Weisbro and sons purchases its inventory one quarter

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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. \$32,000 Quarter 2 disbursements = [(60 90) \$34,000 .60] + [(30 90) \$42,000 .60] = \$22,000 Difficulty level: Challenge Topic: CASH DISBURSEMENTS Type: PROBLEMS 91. 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)] = \$1,462.50 Difficulty level: Challenge Topic: CASH DISBURSEMENTS Type: PROBLEMS 26-70
Chapter 26 - Short-Term Finance and Planning 92. 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) = \$930 Difficulty level: Challenge Topic: CASH DISBURSEMENTS Type: PROBLEMS 93. 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 = \$225 Difficulty level: Challenge Topic: CASH BALANCE Type: PROBLEMS 26-71
Chapter 26 - Short-Term Finance and Planning 94. 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. \$910 Cash balance = \$280 - \$130 - \$210 + \$460 = \$400 Difficulty level: Medium Topic: CASH BALANCE Type: PROBLEMS