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  3. 2. cash budget is not based on: a. varialble overh

2. Cash budget is NOT based on: a. Varialble Overheads budget b. Production budget c....

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Accounting

2. Cash budget is NOT based on:

a. Varialble Overheads budget

b. Production budget

c. Capital Expenditure budget

d. Sales budget

Company has sales of $700,000 in January. Normally, 60% of sales is collected within the month of sales. Of its remaining uncollected sales, 53% is paid in the month following the sale, and 44% is paid in the second month following the sale. The rest is bad debt. The amount of bad debt from January sales is:

a.$12,600

b.$8,400

c. Cannot be determined

d.$21,000

5. Which of the following is not needed in preparing a production budget?

a. Opening balance of inventory

b. Closing balance of inventory

c. Sales

d. Production cost per unit

Industries expects credit sales for January, February, and March to be $200,000, $260,000, and $300,000, respectively. It is expected that 55% of the sales will be collected in the month of sale, 35% will be collected in the following month, and 10% will be collected in the second month after the sales. The closing balance of Accounts Receivable at the end of March is expected to be:

a.$161,000

b.$155,000

c.$121,000

d.$135,000

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