3. The Cash Available component on a Cash Budget consists of which of the follow

Question

3. The Cash Available component on a Cash Budget consists of which of the following? a. Beginning Balance plus Sale of Securities plus Capital Expenditures b. Beginning Balance plus Cash Collections plus Sale of Plant Assets c. Beginning Balance plus Capital Expenditures plus Loans Payable. d. Both b and c answers are correct. e. None of the above answers is correct. 4. Gary Enterprises has budgeted sales for the months of September and October as $300,000 and $280,000 respectively. Monthly sales are 80% credit and 20% cash. Of the Credit Sales, 50% are collected in the month of sale and 50% are collected in the following month. What are the October Cash Collections? a. $290, 000 b. $232,000 c. $168,000 d. $288,000 e. $340,000 A business secures a loan of $8,000 from Citibank, NA for 60 days at 3%. Ho much interest will the business pay the bank at the end of 60 days? 5,

Explanation / Answer

As only question number 4 is asked so I am answering 4th question: Particulars Amount October cash sales (280000*0.20) 56000 October credit sales (280000*0.80*0.50) 112000 September credit sales (300000*0.80*0.50) 120000 Total cash collections 288000 So correct answer is d) $288000

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