In sipans cash budget for this first month how much

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85. In Sipan’s cash budget for this first month, how much money will Sipan need to borrow at month  end? A) $7,000 B) $16,000 C) $17,000 D) $28,000 Level: Hard    LO:  8    Ans:  B Brewer, Introduction to Managerial Accounting, 3/e 130
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86. In Sipan’s budgeted income statement for this first month, what will net income (loss) be for this first  month? 87. In Sipan’s budgeted balance sheet at the end of this first month, at what amount will accounts  receivable be shown? Use the following information to answer 88-89 The Ellis Company has budgeted its activity for September according to the following information: Sales are budgeted at $392,000 and all sales are for cash. All purchases of merchandise inventory are for cash. Merchandise inventory was $150,000 on August 31  and the planned merchandise inventory on September 30 is $140,000. All merchandise is sold at 40%  above cost. The selling and administrative expenses are budgeted at $92,000 for the month. All of these expenses are  paid for in cash except for depreciation of $12,000. 88. The budgeted net income for September is: 89. The budgeted cash disbursements for September are: A) $140,000 B) $270,000 C) $350,000 D) $362,000 Level: Medium    LO:  8    Ans:  C Brewer, Introduction to Managerial Accounting, 3/e 131
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Use the following information to answer 90-93 Kelly Company is a retail sporting goods store. Facts regarding Kelly’s operations are as follows: Sales are budgeted at $220,000 for November and $200,000 for December. Collections are expected to be 60% in the month of sale and 38% in the month following the sale. 2% of  sales are expected to be uncollectible. The cost of goods sold is 75% of sales.  A total of 80% of the merchandise is purchased in the month prior to the month of sale and 20% is  purchased in the month of sale. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $22,600. Monthly depreciation is $18,000.
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