1. Gregory Company has budgeted the following credit sales during the last four months of...
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Accounting
1. Gregory Company has budgeted the following credit sales during the last four months of the year: September, $14,000; October, $15,000; November $18,000; December, $34,000. Experience has shown that payment for the credit sales is received as follows: 50% in the month of sale, 43% in the first month after sale, 5% in the second month after sale, and 2% uncollectible. How much cash can Gregory Company expect to collect in November as a result of credit sales?
A.
$15,450
B.
$16,830
C.
$7,150
D.
$16,150
2.
Frontlist Publishing Company publishes books and they have gathered the following data for the month of October:
Data
Cash on 8/1
$5,000
Expected Cash Collections
$352,000
Direct Materials Cash Disbursements
$67,000
Direct Labor Cash Disbursements
$45,000
MOH Cash Disbursements
$38,000
Operating Expenses Cash Disbursements
$88,000
Capital Expenditures Cash Disbursements
$131,000
Frontlist Publishing Company requires an ending cash balance of at least $5,000 and can borrow from a line of credit in $1,000 increments. What is the excess or deficiency of cash for October?
A.
$12,000
cash deficiency
B.
$5,000 cash excess
C.
$29,000
cash deficiency
D.
$17,000
cash excess
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