Benjamin Netanyahu sells fruit and vegetables from his market stall for cash. His budgeted sales for February, March and April are $45,000, $50,000 and $55,000 respectively. His suppliers allow him one month’s credit in which to pay for the fruit and vegetables that he sells. His purchases cost is budgeted to be 80% of the sales value of his produce. Benjamin rents his market stall at a cost of $1,000 per month, payable on the first day of each month. Electricity costs for his market stall amount to $200 per month and he pays for these quarterly in March, June, September and December. Benjamin withdraws $2,000 a month from his business for his own personal expenses. What is Benjamin's net cash inflow for March?       $6,400       $6,800       $10,400       $10,800

At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $9,250 Purchase season football tickets in September 160 Additional entertainment for each month 250 Pay fall semester tuition in September 4,800 Pay rent at the beginning of each month 600 Pay for food each month 550 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 1,200 Prepare a cash budget for September, October, November, and December. Answer Check Figure: December 31 cash balance, $3,490 Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?  What are the budget implications for…

Nogueiras Corp's budgeted monthly sales are $6,000, and they are constant from month to month. 25% of its customers pay in the first month and take the 2% discount, while the remaining 75% pay in the month following the sale and do not receive a discount. The firm has no bad debts. Purchases for next month's sales are constant at 50% of projected sales for the next month. "Other payments," which include wages, rent, and taxes, are 25% of sales for the current month. Construct a cash budget for a typical month and calculate the average cash gain or loss during the month. Do not round intermediate calculations.     a. $1,500     b. $1,380     c. $1,410     d. $1,493       e. $1,470

Lane Products manufactures a popular kitchen utensil. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. It opened negotiations with the local bank for a one-month loan of $56,000 starting March 1. The bank would charge interest at the rate of 0.5 percent per month and require the company to repay interest and principal on March 31. In considering the loan, the bank requested a projected income statement and cash budget for March. The following information is available: . The company budgeted sales at 20,000 units per month in February, April, and May and at 17,000 units in March. The selling price is $68 per unit. The company offers a 2 percent discount for cash sales. The company's experience is that bad debts average 1 percent of credit sales. The inventory of finished goods on February 1 was 3,200 units. The desired finished goods inventory at the end of each month equals 25 percent of sales anticipated for the…