Arakaki inc is working on its cash budget for january

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45. Arakaki Inc. is working on its cash budget for January. The budgeted beginning cash balance is  $41,000. Budgeted cash receipts total $114,000 and budgeted cash disbursements total $113,000. The  desired ending cash balance is $60,000. The company has an open line of credit, with interest not due  until the month following the month in which funds are borrowed. Prior to January, this open line of  credit will not have been used. The excess (deficiency) of cash available over disbursements for January  will be: A) $42,000  B) $155,000  C) $40,000  D) $1,000 Level: Easy    LO:  8    Ans:  A 46. Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $45,000.  Budgeted cash receipts total $129,000 and budgeted cash disbursements total $124,000. The desired  ending cash balance is $60,000. The company has an open line of credit, with interest not due until the  month following the month in which funds are borrowed. Prior to May, this open line of credit will not  have been used. To attain its desired ending cash balance for May, the company needs to borrow: Use the following information to answer 47-49 Home Company will open a new store on January 1. Based on experience from its other retail outlets,  Home Company is making the following sales projections: Home Company estimates that 70% of the credit sales will be collected in the month following the month  of sale, with the balance collected in the second month following the month of sale. 47. Based on these data, the balance in accounts receivable on January 31 will be: Brewer, Introduction to Managerial Accounting, 3/e 116
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48. The March 31 balance in accounts receivable will be: 49. In a cash budget for the month of April, the total cash receipts will be: A) $74,000 B) $57,000 C) $114,000 D) $97,000 Level: Medium    LO:  2    Ans:  D Use the following information to answer 50-52 Roberts Company manufactures home cleaning products. One of the products, Quickclean, requires 2  pounds of Material A and 5 pounds of Material B per unit manufactured. Material A can be purchased  from the supplier for $0.30 per pound and Material B can be purchased for $0.50 per pound. The finished  goods inventory on hand at the end of each month must be equal to 4,000 units plus 25% of the next  month’s sales. The raw materials inventory on hand at the end of each month (for either Material A or  Material B) must be equal to 80% of the following month’s production needs.
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