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  3. jinx company budgets its march sales at $70,000 an

Jinx Company budgets its March sales at $70,000 and April sales at $80,000. It estimates...

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Accounting

Jinx Company budgets its March sales at $70,000 and April sales at $80,000. It estimates that 60% of sales are made in cash and 40% are on credit. 70% of credit sales are collected in the month of sale and 30% are collected in the following month. Jinx also budgets its March inventory purchases at $40,000 and April inventory purchases at $35,000. It estimates that 30% of purchases will be paid during the current month, and 70% will be paid in the following month. On Jinx's budgeted Balance Sheet for the month of April, its Accounts Receivable balance will be:

$52,500

$24,500

$9,600

$14,900

Branson Company's Financial Leverage increased from 11% to 15% in the current year, while its average cost of borrowing remained the same. This indicates that the company is:

Valued at a higher stock price than before.

Paying more in interest expense than before.

Making a relatively higher return on its assets than before.

More highly financed by debt than before.

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