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ID: 2414426 • Letter: X

Question

x New Tab e https/newconnect.mheducation.com,flow/connect html G Watch TV and mh/w.myheri x (5,71 h 18, 20 & 21 6 alci Bookmarks T Schedule and C ? Bookmarks . My UTEP?Home I-80 Now InQuizrhe for Princ Savea Help Save & Exit A department store has budgeted sales o winter season Beginning inventory for September is expected to be 4000 suits What Is the dollar amount of the purchase of suits if each suit has a cost of f 12.000 men's suits in S eptember. Management wants to have 6,000 suits in inventory at the end of the month to prepare for the Multiple Choice $750,000 $900000 $1,050,000 $1.200,000 $1,350.000 0? FS 8 6

Explanation / Answer

Answer(1): Budgeted purchase: 6000+12000-4000 = 14000 suits

14000 * $75 = $1050000

Option "c" is correct.

Answer(2): "Budgeted Income statement" is the correct option.

Without knowing the cash budget figures, budgeted income statement cannot be made.

Answer(3): "Estimated depreciation expenses for October" would not be used in preparing the cash budget.

Depreciation is a non cash expense and so not used in preparing the cash budget.

Answer(4): "Depreciation expense"

When preparing the cash budget, all of the following are considered except "Depreciation expense" because depreciation is a non cash expense and not the part of cash transactions.