Question

Question 1

Wild West Fashion expects the total costs of goods sold to be $39,000 in November and $69,000 in December for one of its young adult suits. Management also wants to have on hand at the end of each month 20 percent of the expected total cost of sales for the following month. What dollar amount of suits should be purchased in November?

Multiple Choice

• $30,700.

• $31,200.

• $45,000.

• $52,800.

• $69,000.

Blake Company has $33,000 cash at the beginning of June and anticipates $82,400 in cash receipts and $52,500 in cash disbursements. The company requires a minimum cash balance of $38,000. Any excess cash over the minimum desired balance is used to pay down debts. Blake has an agreement with its bank to borrow as needed or to repay loans as funds become available. As of May 31, the company owes $33,000 to the bank. The balance of the loan on June 30 will be:

Multiple Choice

• $8,100.

• $13,100.

• $33,000.

• $41,100.

• $57,900.

Answer 1

Answer is given below