FINANCIAL MANAGEMENT

Bachelor of science in accountancy (BLAW 2001)

Budget
ing

MODULE 8-BUDGETI
NG C.I
tai
dsi
ntheuseofre
sour
cesandemplo
yeesb
yse
tt
in
gab
enc
hma
rkt
hatc
anb
eus
ed
f
ort
hesubs
equen
teval
uat
io
no fp
erf
or
ma nc
e.
THEORIES: D.I
tpr
ovi
desor
gani
zat
i
onali
ndep
endenc
e.
Basi
cCo nce
pts
1.T heconce
pt o
f“manage
mentbyexc
epti
on”r
efer
stomanag
eme
nt’
sco
nsi
der
at
io
nof 4
. Whi
chof
thefo
ll
owingi
slea
stl
ik
elyareaso
nwh yacompanypre
par
esit
sbu
dget
?
A.o nl
ythoseit
emstha
tvar
ymater
ial
l
yfromexpect
at
io
ns. A.Topro
vid
eab asi
sforc
ompari
sonofact
ualpe
rfo
rmance
B.o nl
yrareevent
s. B. T
ocommunica
teth
ec o
mp a
ny’spl
ansthr
ough
outth
ee nt
i
rebus
ine
ssor
gan
iza
ti
on
C.s ampl
ess el
ect
edatr
ando
m. C.Tocont
ro
linco
mea ndexpe
ndit
ur
einap ar
ti
cul
arper
io
d.
D.o nl
ysigni
fi can
tunf
avo
rabl
edevi
ati
ons. D.Tomakesureth
ecomp a
nyexpandsi
tsoper
ati
ons.

8
. Afor
ma lwri
t
tenst
ate
me nto
fma
nag
eme
nt’
spl
ansfort
hef u
tur
e,p
acka
gedi
nfi
nan
cia
l 5
. Whi
cho f
thefo
ll
owi
ngdoesnotcont
ri
but
etoaneff ec
ti
veb
u d
get
i
ng?
t
er
ms,isa: A.T opmanagementi
sin
vol
vedinbudge
ti
ng.
A.Re spo
nsi
bil
i
tyr
eport
. C.Co s
tofpro
duct
io
nrep
ort
. B. Togiv
ee ac
hma nage
raf r
eehandinthepre
parat
i
onoft
hebud
get
,th
eda
tawi
t
hint
he
B.Perfor
mancere
port
. D.Budget. mast
erbudget
arefl ex
ibl
e.
C.T heorga
niz
ati
oni
sd i
vi
dedi
ntores
ponsi
bi
li
t
yunit
s.
2
. Bu
dg e
tsarerel
at
edt
owhic
hof
thef
ol
lo
win
gma
nag
ementf
unc
ti
ons
? D.T her
eiscommuni
cati
onofr
esul
ts.
A.Planni
n g C.Contr
ol
B. Perf
or
ma nc
eeval
uat
i
on D.all
oft
hese 6
.T h
eb udge
tsthatar
eb asedonav er
yh i
ghleve
lsofper
fo
rmance
,li
kee
xpe
cte
dco
stsu
sin
g
i
deal
stan
dards,
2
2.Budg
eti
ngs up
port
st heplann
ingproc
essb yencourag
ingalloft
hefol
lo
winga c
ti
vi
ti
es A.a s
sis
tinpl
an n
ingtheope
rat
ion
so ft
hecompany
ex
cept
: B. st
i
mu l
at
ep eopl
etoperf
or
mb et
terth
antheyor
di
nari
l
ywo u
ld
A.Re qui
ri
ngal
lorgani
zat
i
onaluni
t
stoestab
li
shthe
irgoal
sfo
rthecomi
ngper
io
d. C.a r
ehelpf
uli
ne val
uat
in
gtheperf
ormanc
eo fmanag
ers
B.Incre
asi
ngt he moti
vat
i
ono fma nag
ersa n
de mpl
oyee
sb yp r
ovi
di
nga gr
eed-
upon D.c a
nleadtolowleve
lsofper
fo
rmance
exp
ecta
ti
ons.
C.Imp r
ovi
ngo v
eral
ld e
cis
ionma k
ingbyc ons
ider
ingallvi
ewpoi
nt
s,opt
i
ons,andc o
st 7
. Whi
choft
hefol
lowi
ngs t
ate
me nt
sisi
ncor
rec
t?
con
tr
olpro
grams. A.Animposedb u
dg e
tisth
es ameasapart
ici
pat
i
vebudge
t.
D.Direct
i
nga n
dc o
o r
di
nati
ngoper
ati
onsdur
ingt
hep er
io
d. B. Pr
epa
rat
ionofthebudgetwoul
dbetheres
ponsi
bi
l
it
yofeachr
esponsi
bi
l
it
yuni
t
.
C.T o
pma n
ageme nt
’ssuppor
tisne
cess
a r
ytopro
motebudg
etpar
ti
ci
pati
on.
3
. Whi
choft
hefol
l
owin
ga dv
antag
e sd
oesabu
dgetmo
stl
ypr
ovi
de? D.T h
etopma n
a g
eme ntsho
u l
drev
iewandappr
oveeac
hrespon
sib
il
it
yuni
t’
sbu
dget
.
A.Coord
inat
i
onisi
ncrea
sed.
B.Pla
nnin
gisemphasi
zed. 9
.T h
epri
ma ryrol
eofth
eb udget
dire
ctorandthebudget
i
ngd e
part
menti
sto
C.Commu ni
cat
i
oniscont
in
uous. A.Se t
tl
ed i
s p
ute
sa mongo perat
in
ge x
ecuti
vesduri
ngthed ev
elo
pmentofthean
nual
D.Compari
sonofact
ualv
ersusbu
dget
edda
ta. o
perati
ngplan
.
B.De ve
lopt h
ea nnua
lprofi tplanb yselec
ti
ngthea l
t
ernat
i
vestobeadopt
edfor
mthe
2
4.Whi
choft
hefo
ll
owi
ngisNOTa nadv
anta
geofbu
dget
i
ng? s
ugge s
ti
onssubmit
te
db ythevar
iousoperat
i
ngsegments.
A.Itf
or
cesmanag
erstopl
an. C.Co mpil
ethebudgetandman a
get h
eb ud
g etp
roc
ess.
B.Itp
rov
ide
sreso
urcein
for
mati
onth
atcanb
eu s
edt
oimpr
oved
eci
si
onma
kin
g. D.Justi
fythebudge
ttothecor
p o
rat
ep l
anni
n gcommit
te
eo ft
heboar
dofdi
re
cto
rs.

433
 Budget
ing

B. z
ero
-ba
sedb
udg
eti
ng D.l
i
neb
udg
eti
ng
1
0.Thepr
imaryvar
iabl
eaff ecti
ngact
ivepart
ic
ipa
ti
ona ndcommitmentt
othebud
geta
ndt
he
co
ntr
olsy
stemis 4
1.Th
eb ud
getappr
oacht
hatismorer
el
eva
ntwhenthecont
i
nuanc
eo fanact
i
vit
yoro
per
at
io
n
A.Ma nagementeffort
stoachi
evethebudgetr
athe
rthanopt
imiz
eres
ult
s. must
bejust
ifiedonthebasi
sofi
t
sneedorus
efu
lnes
stotheor
gani
zat
i
on.
B.T her
igi
dadheren
cetothebudge
t wi
tho
utrec
o g
niz
ingchang
ingcond
it
io
ns. A.theinc
rement
alap
proach C.thebasel
inea
pproa
ch
C.T o
pma nagementi
nvo
lvementi
nsu p
porto
fthebudget
. B.thezer
o-ba
sedapproa
ch D.b ot
haa n
dba r
etru
e
D.T heoppor
tuni
t
ybudget
inggiv
estori
sk-
tak
erma nag
ersfo
rdepart
mentgr
owt
h.
1
1.Thepro
cesso fd
evel
opi
ngbudge
te s
ti
matesb yr
equi
r
ingalll
evel
so fmanag
emen
tto
1
2.Avar
ia
nto ffi s
cal
-ye
arbud
get
i
ngwh
ere
byatwel
ve-mont
hp r
oj
ect
io
nsi
nt
oth
efu
tur
eis es
ti
matesales
,pro
duct
i
on,andothe
ro per
ati
ngdat
aa sthoug
ho per
ati
onswer
ebei
ng
mai
nt
ai
neda t
all
ti
mes: i
ni
ti
at
edfort
hefi r
stt
i
mei sr
ef
er
redt
oa s
:
A.Forec
asti
ng. C.Co
nti
nuousbud
geti
ng. A.F o
recast
i
ng. C.Conti
nuou
sb ud
geti
ng.
B.Zero-
basedbudg
eti
ng. D.Calen
da rb
udget
i
ng. B.Z e
ro-
b a
sedbud
get
ing
. D.Progr
amb ud
geti
ng.

3
5.Themetho
do fb
udget
ingwhi
chad
dsonemont
h’
sb u
dgett
otheendoft
hep
lanwh
ent
he 3
8.Whi
choft
hefol
l
owingi
sac o
nte
mpo
rar
yap
pro
acht
obudge
tin
g?
cu
rre
ntmonth
’sbud
geti
sdro
ppedf
romt
hepl
anref
er
sto A.inc
rement
alap
proach C.base
li
neappro
ach
A.L on
g-t
ermbudget C.Incr
ement
alb
u d
get B.zer
o-ba
sedapproa
ch D.bot
haa ndbaret
r
ue
B.Op er
ati
onsbud
get D.Co n
ti
nuou
sbudget
5
1.Ze
ro-
basebu
dget
ingrequi
resmanager
sto
2
7.Aco
n t
i
nuousbudge
t A.Just
if
yexpe
ndit
urestha
t a
reinc
reas
esovert
hepr
iorper
i
od’
sbudg
ete
damo
unt
.
A.isabudgett
hati
sre
vise
dmo nt
hl
yorquar
ter
ly
. B.Just
if
yal
lexpend
it
u r
es,notj
usti
ncr
eas
eso v
erl
ast
y e
ar’
samou
nt.
B.isamed i
umter
mp l
anthatc
onsi
st
sofmoreth
an2y ear
s’p
roj
ect
io
ns. C.Ma i
nt
ai
nafull
-
yearbudgetin
tac
tatal
lt
imes.
C.isappr
opri
at
eonlyf
oruseofanot
-f
or
-pr
ofi tent
i
ty. D.Ma i
nt
ai
nab udge
twithzer
oincr
easesov
erthep
ri
orperi
od.
D.wo r
ksbestf
oranen
ti
tytha
tcanr
eli
abl
yfor
ecast
event
sayearormor
ein
tot
hef
ut
ur
e.
1
3.Ze
ro-
base
dbudget
i
ng:
3
7.“
In
cre
me nt
albu
d g
eti
ng”r
efer
sto A.inv
olv
esth
erevi
ewofchang
esma detoanorg
ani
zat
io
n’sor
igi
nal
budge
t.
A.li
ne-b
y-l
in
ea ppr
oval
ofexpe
ndi
tur
es B.doesnot
prov
ideasummaryofann
u a
lproj
ect
i
ons.
B. s
ett
i
ngb ud
g e
tal
lowanc
esbase
do npr
ior
yearex
pendi
t
ure
s C.inv
olv
esth
erevi
ewofeachcost
componentf
romacost
/bene
fi tpe
rsp
ect
iv
e.
C.requi
ri
ngtopmanagementa
ppr
ovalo
finc
reas
esinbu
dget
s D.emphasi
zest
herel
at
ion
shi
po f
eff ortt
oproj
ect
edannua
lrev
enues
.
D.usin
gincr
eme nt
alr
even
uesandcost
sinbud
geti
ng
1
8.Asy
s t
emat
iz
eda p
proachknownaszero
-basedbudge
ti
ng:
4
9.Abu
dgetplanforann
ualfi x
edc
ost
sth
atar
i
sesfr
omt o
pma n
agemen
tde
cis
ion
sdi
r
ect
l
y A.Classi
fi esthebudgetbythepri
oryear’
sact
iv
it
yandesti
mat
esthebenefi tsari
si
ngfr
om
r
eflect
in
gc or
pora
tepol
i
cy. eac
ha c
ti
vi
ty.
A.Fl
exi
blebudget
. C.Dis
cret
i
onarybudge
t. B. Commencewit
he i
t
h e
rthecurr
entl
eve
lofspendi
ngorp
roj
ect
edwhich
everi
slo
we r.
B.Sta
ti
cb u
dget
. D.Prog
rambud g
et. C.Present
splann
eda ct
i
vit
iesf
oraperi
odofti
mebutdoe
sn o
tpres
entafi rmcommitment
.
D.Divid
estheact
ivi
t
iesofindi
vi
dual
respo
nsibi
l
it
ycent
er
sint
oas er
ie
so fp
a c
kag
e sthat
are
3
6.Th
ete
rm“de
cis
ionpac
kag
e”r
el
at
est
o pr
ior
i
ti
zed.
A.comp
rehen
siveb
udge
ti
ng C.p
rog
ramb
udg
eti
ng

434
 Budget
ing

2
0.Whi
choft
hefol
lowi
n gst
at
ementsabo
utZero
-bas
edbudget
in
gisin
corr
ect
? 2
6.Ase
ri
esofbud
getsf
orv
ary
ingl
eve
lso
fac
ti
vi
tyi
sa:
A.Allac
ti
vit
i
esinthecompanyareo
rgani
zedi
nt
ob r
eak-
upuni
tsca
ll
edpack
age
s. A.Vari
abl
ecostbu
dge
t. C.Masterb
ud g
et.
B. Al
lco
stshavetobejus
ti
fi edev
erybudge
ti
ngperi
od. B.Fle
xib
lebud
get. D.Zero
-basedbudge
t.
C.T h
ep r
ocessisn o
tti
meco ns
umin
gs i
ncej
usti
fi c
ati
onofcost
scanbedonea
sar
out
i
ne
mat
te
r. 4
8.I
faco
mp a
nywishestoe
sta
bli
shaf
act
or
yo v
erhe
adbudget
syst
eminwhic
hes
ti
mat
edc
ost
s
D.Z e
ro-
basedbudg e
ti
ngi
ncl
udesvar
iab
lecos
tsonl
y. ca
nbederi
veddi
re
c t
l
yfr
ome s
ti
mat
esofa
cti
vi
tyl
eve
ls,
its
houl
dprep
area
A.fl ex
ibl
ebudget
. C.Discr
eti
onar
ybudget
.
3
4.Bu
dget
in
gexpen
dit
ur
esbyp
urp
osei
sca
ll
ed B.Prog
ramb u
dget. D.Ma nuf
act
uri
ngbudge
t.
A.prog
rambudge
ti
ng C.z
ero
-bas
edbud
geti
ng
B. l
i
nebudg
eti
ng D.flexi
bl
ebu
dgeti
ng 4
6.Th
ebasicdi
ff er
e ncebet
we e
nama st
erbudgetandafl ex
ibl
ebudgeti
sth
a ta
A.Flexi
bl
ebudge tcon
side
rsonl
yvari
abl
ec o
stsbutamast
erbudg
etconsi
dersall
cost
s.
2
8.Ast
at
icbud
geti
snotappr
opri
at
eineva
luat
i
ngama n
ager
'seff
ect
i
ven
essi
fac
omp
anyh
as B.Flexi
bl
ebudge tal
lo
wsma nagementl
ati
t
udeinme e
ti
nggoal
swh er
easama sterb
udget
A.subst
ant
ia
lfi x
edc os
ts. i
sbasedonafi xedsta
ndard.
B.subst
ant
ia
lvar
ia
blecost
s. C.Ma s
terbudgetisforane n
ti
repro
d u
cti
onfaci
l
it
ybutafl exi
blebudgetisappl
ic
abl
eto
C.plan
nedact
iv
it
yleve
lsth
atmatc
hactu
alac
ti
vi
tyl
eve
ls. s
ing
ledepar
tme nto
nly
.
D.novari
abl
ecost
s. D.Ma s
terbud
ge tisbase
do nonespeci
fi clev
elofpr
oduc
ti
onandafl exi
blebudge
tcanb
e
p
repar
edfor
a nyprodu
cti
onlev
elwi
thi
narel
evantr
ange
4
5.Fl
exi
bl
ebudget
i
ngisareport
i
ngsyst
emwh e
rei
nthe
A.Bu dg
etst
andar
dsma ybeadj
ust
e datmanage
me nt
’
sd i
scr
et
ion
. 4
7.Whi
cho
fth
efoll
owi
ngi
sad i
ff er
encebetweenasta
ti
cbudgetan
dafl e
xib
lebud
gets
?
B.Plannedl
evel
ofact
ivi
tyi
sadjus
tedtotheact
uall
eve
lo f
act
iv
it
ybef
oret
hep
erf
or
man
ce A.Afl ex
ibl
ebudge
tincl
ude
so n
lyvar
iabl
ecost
s;asta
ti
cbudgeti
ncl
ude
so n
lyfixedcost
s.
r
epor
tispr
epar
ed. B.Afl ex
ibl
ebudge
tincl
ude
sa l
lco
sts,
as t
ati
cbudget
inc
lud
esonlyfixedcos
ts.
C.Re po
rti
ngdat
esvar
ya cc
ord
ingtothemanager
ia
llev
elsoft
heuse
rs. C.Afl exi
bl
eb u
dgetg
ivesdi
ff er
ental
lo
wa nc
esfordi
ff e
rentl
eve
lsofac
ti
vi
ty
,astat
i
cbudge
t
D.Pa c
kagesofa
cti
vi
ti
esvaryf
romp er
i
o dt
operi
od. doe
snot.
D.The
rei
sn odi
ff er
encebet
weenthetwo.
1
5.Abud
getthatpr
esent
sthep l
anforarangeo
fac
ti
vi
tys
oth
att
hep
lanc
anb
ead
jus
tedf
or
ch
ange
sinac t
i
vit
yle
vel
sisref
err
edt oa
s: 1
7.Asys
temthatcl
ass
ifiesbudgetr
equ
estsb
yac
ti
vi
tya
nde
sti
mat
est
heb
ene
fit
sar
i
sin
gfr
om
A.Zero-
basedbudget
i
ng . ea
chact
ivi
ty
:
B.Conti
nuousbudget
i
ng . A.Incr
ementa
lbudge
ti
ngsys
tem.
C.Fle
xibl
eb u
dgeti
ng. B.Stat
icbudge
ti
ngsyst
em.
D.Progr
amp la
nnin
ga ndbudge
ti
n gsy
ste
m. C.Progra
mp l
anni
ngandbudg
etin
gsyst
em.
D.Part
ici
pat
iv
esyst
em.
1
6.Afl e
xib
lebudg
eti
s
A.onethatc
anbecha
ngedwheneve
rama na
gersodesi
r
es 2
1.Abudg
ettha
tid
en t
i
fi esr
eve
nue
san
dco
stswit
hani
ndi
vi
dual
con
tr
ol
li
ngt
hei
ri
ncu
rre
ncei
s
B. a
djus
tedt
oreflect
expec
tedcos
tsat
theact
uall
eve
lofac
ti
vi
ty A.Ma st
erbud
ge t C.Pro
ductb
udget
C.onethatu
sesth
efo
rmul
atot
alcos
ts=costp
eruni
txuni
tspr
oduc
ed B. Res
ponsi
bi
li
tybud
get D.Noneoft
heabo
ve
D.thesameasacont
i
nuousbudg
et
2
5.Th
edi
ffe
ren
ceb
etwe
ena
nin
div
idu
al'
ssu
bmi
t
tedb
udg
etp
roj
ect
i
ona
ndh
iso
rhe
rbe
st

435
 Budget
ing

es
ti
mateofth
eite
mb eingproj
ect
edisanexa
mp l
eof D.No
neo
fth
eab
ove
A.p a
d d
ingth
eb ud
ge t
B.a d
h e
ri
ngtozero-
ba s
edb u
dgeti
ngass
umpti
ons 4
4.Aco
mmo nst
art
in
gp o
int
int
heb
udg
eti
ngp
roc
essi
s
C.creat
ingbudget
aryslac
k A.exp
ectedf
utur
eneti
nco
me. C.tomoti
vat
eth
esale
sfor
ce.
D.b e
inginc
ongru
ent wi
thpart
ic
ipa
ti
vebudge
ti
ng B.pas
tp e
rf
ormance
. D.ac l
eansl
at
e,wi
t
hn oe
xpect
at
io
ns.

4
3.Bu
dge
tsl
ackisacondi
ti
oninwhi
ch 5
7.Whi
choneofthef
oll
owi
ngisanext
ern
alf
act
ort
hat
wou
ldn
eedt
obec
ons
ide
redi
nfo
rmi
nga
n
A.Demandisl
owa tv
ari
ousti
mesoft
heyear i
ni
ti
alb
udgetpr
oposa
l?
B.Exce
ssma c
hinecapac
it
yexi
st
sinsomearea
so f
thepl
ant A.changesi
np r
oduct
desi
gn
C.Ther
eisanint
ent
ion
alover
est
i
mateofexp
ensesoranund
ere
sti
mat
eof
rev
enu
es B. i
nt
rod
ucti
onofanewproduc
t
D.Manager
sgrantf
avor
edemplo
yeesext
r
atime-
off C.competi
to
rs'a
cti
ons
D.a d
opt
ionofanewma n
u f
act
ur
in
gp r
oce
ss
3
9.Theproce
du r
ef o
rs e
tt
ingprofito bj
ect
i
vesinwh i
cht hedete
rminat
i
ono fpr
ofi tobj
ecti
vesi
s
subo
rdi
nate
dt otheplan
ning
,andt h
eo bj
ect
i
veseme rgeasthep r
oduct
of t
heplan
ningi
tse
lf 1
4.Oper
ati
ngbudgetsar
e
i
sthe A.af o
recastofexp
ecte
do per
at
ingexpe
nses.
A.ap ri
orimethod C.p ract
ical
me t
hod B.af o
recastofoper
at
ingexpens
esandrel
at
edrevenue
s.
B.t he
oret
icalmethod D.ap ost
eri
ori
me t
hod C.af o
recastofuni
t
so fpr
oduct
i
on.
D.c o
ncernedwitht
heincome-
genera
ti
ngact
iv
it
ie
so fafi r
m.
4
0.Theproce
du r
ef orset
ti
ngprofi tobj
ect
iv
esi nwhichma nagementspeci
fi esag i
venrat
eof
re
tur
nthati
tseekstoreal
iz
einthelongru
nb ymea n
so fpla
nningt
owardthaten
disthe 5
4.Whati
stheproperpr
eparat
i
o nse
quenci
ngoft
hefol
lo
wingbudge
ts?
A.ap ri
orimethod C.p ragmati
cme t
hod 1. Budget
edBa l
anceSheet
B.t he
oret
icalmethod D.a dh ocme t
hod 2. Sal
esBud g
et
3. Sel
l
ingandAd mini
st
rat
i
veBu dg
et
5
0.Budget
i
ngp ro
ce s
sinwh i
chin
for
ma t
ionfl owstopdowna ndbott
omu pisre
fer
redtoas: 4. Budget
edIncomeState
me nt
A.Co nti
nuousbu d
geti
ng. C.Pe rpetua
lbudget
ing A.1 ,2
,3,4 C.2 ,3,4,1
B.Pa rt
ic
ipat
ivebudget
ing D.J oi
nt budg
eti
ng B 2 ,3
,1,4 D.2 ,4,1,3

4
2.Whi
choft
hefol
lowin
gisnot
ap ot
ent
i
alpr
oble
mwithpar
ti
ci
pat
i
veb
udg
eti
ng? 2
9.I
nest
imat
in
gt hesal
esvol
umeforamast
erb
udg
et,wh
icho
fth
efo
ll
owi
ngt
ech
niq
uesma
y
A.set
ti
ngst
an d
a r
dstha
tareei
th
erto
ohighort
oolo
w beu
sedtoi
mp rov
ethepro
jec
ti
ons
?
B.paddi
ngthebudget A.Brai
nst
orming.
C.bui
ldsl
ackint
othebudget B.Stat
i
sti
calanal
ysi
s.
D.all
oft
hea bovearep
ote
n t
i
alpr
obl
ems C.Esti
mat
ingfrompre
vio
ussal
esvo
lume
.
D.Allo
ftheseareus
eful
.
3
3.Th
eid
ealfinan
cia
lpl
anni
ngp
roce
sswou
ldbe
A.to
p-d
ownpl
anni
ng. 3
0.Usi
ngth
econce
ptof‘
exp
ect
edval
ue”i
nsal
esf
or
eca
sti
ngme
anst
hat
thes
ale
sfo
rec
ast
tob
e
B.bot
to
m-uppl
anni
ng. us
edis
C.acombi
nat
i
onoftop
-do
wnandbot
t
om-upp
lan
nin
g. A.d e
vel
ope
du s
ingt
hei
ndi
cat
ormeth
od

436
 Budget
ing

B. t
hes
umof
thesal
esex
pect
edbyi
ndi
vi
dua
lmanage
rs
C.base
done
xpect
edsel
l
in
gpri
ceso
fth
eprodu
cts 1
9.Whi
chofthefol
lowi
ngs t
at
emen t
sisTr
ue?
D.base
donp
roba
bil
i
ti
es A.Un d
e rzero-
basedb u
dgeti
ng,ama n
agerisre
quir
edtost
artatz
erobudgetlev
elseach
p
eri
od ,asi
f t
heprogr
amsinvol
vedwer
ebeingi
nit
i
atedf
ort
hefi r
stti
me.
3
1.Se
vera
lsal
esfore
castsareava
il
abl
efro
md i
ff e
rentsour
cesandth
ema
nag
ersh
aveg
ood B. T
hep ri
ma r
yp ur
poseofthecashbud
geti
stoshowtheexp
ectedca
shbala
nc eatt
h een
d
i
dea
sa b
outt
hei
rli
kel
i
ho o
ds.Thi
ssi
tua
ti
onca
llf
ort
heuseof o
ftheb udgetper
io
d.
A.theexpe
cte
dv a
lueconce
pt C.i n
dica
tormet
hods C.Budge tdataaregener
all
yprepar
edbytopmanagementa
ndd i
st
ri
but
eddown war
di nan
B. h
ist
or
ic
alanal
ysi
s D.as catt
erdi
agr
am o
rganiza
tio
n .
D.Theb udgetc ommit
te
ei sr es
pons
ibl
efo rpr
epari
ngdet
a i
l
edb udg
etfi gur
e sinan
5
3.Ano
verl
yopt
imi
st
icsal
esbudgetmayr
esu
lti
n o
rganiza
tio
n .
A.inc
reas
esinsel
l
ingpri
cesl
at
einth
eyear
.
B.ins
uffic i
enti
nvent
ori
es. 2
3.Whi
chofthefol
lo
wingisaval
idst
ate
me n
t?
C.inc
reas
edsal
esduri
ngtheyear
. A.Re s
po nsi
bi
li
t
yb udgeti
dent
i
fi esre
venueandcost
swit
hthein
div
idua
lre
spons
ibl
efort
hei
r
D.exces
siv
einv
ent
orie
s. i
ncu
rrence.
B. T
heb e s
twaytoestabl
i
shbudgetfig u
resi
stousela
styea
r’
sactua
lcos
tandact
ivi
t
ydata
5
6.Whi
choft
hefol
l
owingb
udget
spr
ovi
dest
hed
ataf
ort
hepre
par
at
ionoft
hed
ir
ectl
abo
rco
st a
sthisyear’
sbudgetes
ti
mates
.
bu
dget
? C.As al
e sbudget
andas al
esfor
ecas
tarethesa
methi
ng.
A.Dir
ect
mater
ial
spur
cha
sebud
get
. C.Sa l
esbud
get
. D.Thep ri
ma r
ypurposeoft
hecashbudgeti
stosho
wt h
ee x
pect
edcashbal
anc
eattheend
B.Cashbud
get. D.Pr o
duc
ti
onbud
get. o
ftheb udg
etperi
od.

5
5.Th
ein
crea
seduseo faut
omati
onandle
ssuseoft
hewo
rkf
or
cei
nco
mpa
nie
sha
sca
use
da PROBL EMS:
t
re
ndt
owardsaninc
reasei
n Costesti
mati
onf ormula
1
A.bot
hvari
abl
ea n
dfi xe
dc os
ts. . Man a
geme nthasprep
aredag r
aphshowi
ngthetot
alcos
tsofoper
at
ingbra
nchwa r
ehou
ses
B.fi x
edc o
stsandad e
creas
einvar
iab
leco
sts
. th
roughoutthecount
ry.Thec o
stl
inecr
ossesth
ev er
ti
cala
x i
satP400,
000.Thetot
alcos
t
C.var
ia
blecost
san dadecr
easeinfixedco
sts
. ofo per
at
ingo neb ranc
hi sP6 5
0,00
0 . Thetot
a lcos
to fopera
ti
ngtenb ranc
hesis
D.var
ia
blecost
san dnochan
geinfi xe
dcost
s. P2,900,
000.F orpurpos
eso fpr
epar
in
gafl exi
blebudgetbas
edo nth
en umberofbr
anch
warehous
e sino per
at
ion,whatfor
mulawo u
ldbeu sedtod et
er
mineb u
dgete
dc ost
sat
3
2.I
npre
pari
ngacashbu
dge
t,wh
icho
fth
efo
ll
owin
gisn
ormal
lyt
hest
art
in
gpo
int
forp
roj
ect
i
ng var
iousl
evelsofact
iv
it
y?
ca
shreq
uir
ement
s? A. Y=P4 00
,000+P2 50
,000X C.Y=P6 50,000+P400,
000X
A.Fixe
da s
set
s. C.Accoun
tsre
cei
vab
le. B. Y=P4 00
,000+P2 90
,000X D.Y=P6 50,000+P250,
000X
B.Sales
. D.Inv
ent
ori
es.
Sal
esbudge
t
5
2.Rec
ognit
i
ono ft
hema n
yu n
cert
ai
nti
esi
nbudge
ti
ngise
xempl
i
fi edb
ycomp
ani
esn
orma
ll
y Pur
chasesbudget–merchand
isi
ngconce
rn
2
A.forec
asti
ngsal
es . PT OComp an
yd e
sir
esanendi
nginv
ent
oryofP140,00
0.Itexp
ect
ssal
esofP80
0,0
00and
B. est
abl
i
s h
ingmini
mumr e
qui
redcas
hbal
ances ha
sab e
ginni
nginv
ento
ryofP130
,00
0.Co s
to fs
ale
sis65%ofsal
es.Bud
get
edpur
cha
ses
C.forec
asti
ngonl
yfi x
edcost
s ar
e
D.o mi
tt
ingexpec
teddi
vid
endpayment
sfr
ombudget
eddi
sbu
rse
ment
s A.P 5 3
0 ,
000 C.P 8 10,
000

437
 Budget
ing

B. P 7
90,
000 D.P1
,07
0,0
00
7
.Lor
ieCompanyp l
anst
os e
ll400,
00 0unit
soffi ni
sh edpr
oduct
inJul
yana nt
ic
ipate
sag r
owt
h
3
. Cal
ypsoCo .h
asp r
oj
ect
edsal
estobeP600
,000i
nJ a
nu a
ry,P750
,00
0inFebr
uary
,and ra
teinsale
so f5%p ermo n
th.T hed esi
redmon t
hlyendi
nginve
ntor
yinu ni
t
so ffi ni
she
d
P800,
000inMarc
h.Cal
ypsowan
tst
ohave50
%o fn
extmo n
th’
ssal
esneed
sonhandatth
e pr
oducti
s8 0%ofthenex
tmo nth
’se s
ti
ma t
edsal
es.
en
do famo nt
h.IfCal
yps
ohasanaver
agegr
ossp
rofi tof40%,whata
ret
heFebru
ary28 Ther
ea r
e3 00,
000fi ni
shedu ni
tsinthein
vent
oryo nJune30.Eachu n
itoffi ni
shedpr
oduc
t
pu
rchase
s? r
equir
esfourpoundsofdi
rectmateri
alsatac o
sto fP2.
50perpound.T her
ea re800,
000
A.P4 65,
000 C.P7 7
5,00
0 pound
so fdi
rec
tmater
ial
sintheinvent
oryonJune30 .
B. P310,
000 D.P4 2
8,00
0 Howma nyuni
tsshoul
dbep r
oducedforthethr
ee-mo n
thper
io
de ndi
ngSepte
mb er30?
A.1 ,2
60,000 C.1 ,331,
440
4
. Bl
ueCompanybud
get
edpur
cha
seso
fP10
0,00
0.Costo
fsal
eswa
sP1
20,
000a
ndt
hed
esi
r
ed B.1 ,3
28,000 D.1 ,424,
050
en
dingi
nve
ntor
ywasP42
,00
0.Theb
egi
nni
ngi
nve
nto
rywas
A.P2 0
,000 C.P4 2,
000 End
inginve
ntorybudget
8
B. P32
,000 D.P6 2,
000 .I ft
herequi
reddi
r
e ctmat
er
ia
lspur
chas
esa r
e8,000po
undsandthedi
rec
tmate
ri
alsr
equ
ir
ed
f
orprodu
cti
onist h
reeti
mest h
ed i
rectmat
e r
i
alspur
cha
ses,a n
dt hebegi
nni
ngdir
ect
5
.Thepaymentsch
edul
eo fpurch
asesmadeona ccoun
tis:60%i nthetimep er
i
odo f mat
eri
al
sa r
ethr
e eandah al
fti
mesthedi
rectmat
eri
al
spurch
ases,whata
rethedes
ir
ed
pur
cha
se,30%inthefo
ll
owin
gt i
meper
iod
,and10%i nthesubse
quentt
imep er
i
od.Tot
al en
din
gd i
re
ctmater
iali
npou
nds?
cr
edi
tpurc
haseswer
eP2 0
0,000inMay
,andP1 0
0,00
0inJ un
e.Tota
lp a
yme n
tsoncred
it A.2 0
,000 C.1 2,
000
pur
cha
seswereP140
,000i
nJune.What
we r
eth
ec r
edi
tpurc
hasesi
nthemo n
thofApr
il
? B. 4,000 D.3 2,
000
A.P2 00
,000 C.P1 45,
000
B.P1 00
,000 D.P2 15,
000 Rawma t
eri
alsusagebu dget
9
. Mi ne
rvaCo mpanysell
sasin
glepr
oduct
.Bu dgete
ds al
esfort
heyearar
eanti
ci
pat
edtobe
Pr
odu
cti
onbu
dge
t 640,
000units
.Th ee s
ti
mate
db e
ginn
inga n
de ndi
ngfi n
ishe
dg oo
dsinve
ntor
yare108,
000
. Montalban Company’s sales budget shows the following expected sales for
6 and90,
000,resp
ecti
vel
y.Ap r
oduc
ti
onof o
neu n
itreq
uir
esthefol
l
owi
ngma t
eri
al
s:
the following year: Ma t
eri
alLL 0
.50lb
.@ P0.
60
Quart
er Uni
ts Ma t
eri
alMM 1
.00lb
.@ P1.
70
Fir
st 120,
000 Ma t
eri
alNN 1
.20lb
.@ P1.
00
Second 160
,000 Whataretheres
p e
cti
vepesoamount
so feachma t
er
ialt
obeu se
dinprodu
cti
ondur
ingt
he
Thi
rd 90,
000 year
?
F
ourt
h 110
,000 Ma t
eri
alLL Mater
ial
MM Mate
ri
alNN
Tot
al 480,000 A. P181,
200 P1,
026,
800 P724
,80
0
Thei
nvent
oryatDec
ember31ofth
epri
orye
arwasbudget
eda
t36,000uni
t
s.Thequan
ti
ty B. P181,
200 P1,
026,
800 P74
6,40
0
offi n
ish
edg o
odsin
vent
oryatt
heendofeac
hquart
eri
stoequal
30%o ft
henex
tquar
ter
’s C. P186,
600 P1,
057,
400 P746
,40
0
budg
etedsal
esofu
nit
s. D. P186,
600 P1,
057,
400 P72
4,80
0
How muchshoul
dtheproduc
ti
onbud
g e
tshowforuni
tstobeproduc
edd u
ri
ngth
efi r
st
quar
te
r? Rawmater
ial
spurchasesb
u dget
1
0
A. 4 8,
000 C.1 32
,000 .Ifth
erewere30 ,
000poundsofr
awmat
er
ia
lonh
andonJ
anu
ary1,60,
000p
ound
sare
B. 9 6,
000 D.1 44
,000 d
esi
redforin
ve n
tor
ya tDe c
embe
r31
,a n
d180
,00
0pou
ndsarere
quir
edfo
rannu
al

438
 Budget
ing

pr
odu
cti
on,h
owmanyp
oun
dso
fra
wma
ter
i
alsh
oul
dbepur
chas
eddu
ri
ngt
hey
ear
? B. 1
,80
0po
und
s D.2
,70
0po
und
s
A.150,0
00pou
nds C.120,
000pou
nds
1
4
B.240,0
00pou
nds D.210,
000pou
nds .Sa
lesComp an
yisbudge
tin
gs al
esof300,000uni
t
so fit
sonl
yprod
uctfort
hecomi
ngyea
r.
Pr
oduct
io
no foneu n
itofpro
ductr
e q
u i
r
e sthr
eepou nd
so fMat
eri
alQ and2p o
und
so f
1
1
. Si
lv
erBowlCompanymanuf
act
uresasin
glepro
duct
.Itkeepsi
tsi
nvent
oryoffini
she
dg o
ods Mat
eri
alL.Inv
ent
oryuni
t
sa tt
hebegi
nningofthey
earare:
at7
5%thecomingmonth
’sb
udgetedsal
es.I
tal
sokee
psit
sinven
tor
yofrawmate
ri
al
sat50% Act
ual
, J
a n.
1 Bu
dgete
d,Dec31
oft
hecomingmo n
th’
sbudge
tedp r
oduc
ti
on.Ea c
hu ni
tofprodu
ctreq
uire
stwopoun
dso f Fin
ishedgood
s 60,000 50,000
mat
eri
al
s.Thep r
oduct
i
onbudgeti
s,inuni
ts
:Ma y,1,
000;Jun
e,1,2
00;Jul
y,1,
300
;augu
st, Mater
ialQ 80,000 60,000
1,
600.Rawmater
ial
purc
has
esinJulywoul
dbe Mater
ialL 88,000 96,000
A.1 ,
525poun
ds C.2 ,5
50po u
nds Howma n
yp ou
ndsofMat
e r
i
alQisSalesplanni
ngt
obu ydur
i
n gt
hecomin
gy e
ar?
B. 2,
900poun
ds D.3 ,0
50po u
nds A.8 50
,000 C.8 62,
000
1
2
B.8 90
,000 D.9 08,
000
. Eac
hu ni
to ffinishedprodu
ctuses6kil
ogr
amso fr
awmater
i
als.Thepr
oduct
i
ona ndi
nve
nto
ry
bu
dgetsforMay2007a r
ea sf
oll
ows: 1
5
.St
ramaCo mpanyprepar
esit
sbudge
tsona n
nu a
lb as
is.Thef
oll
owingbegi
nni
ngandendi
ng
Begi
nn i
ngInve
ntory
: i
nvent
or
yu ni
tl
evelsarepl
annedf
ort
hefi sc
a l
yearofJune1,2
0 06thr
oughMay31,200
7.
Fi
nishedgoods 1
5,00
0u ni
t
s June1,2006 May31,200
7
Rawma t
er
ial
s 21,
000kg.
Rawma t
eri
al* 40,
000 5
0,0
00
Budgeteduni
tsales 1
8,00
0u ni
t
s
Work-
in-
pro
ce ss 10,
000 1
0,0
00
Pla
nne dendi
nginvent
ory
Fi
ni
shedg o
o ds 80,
000 5
0,0
00
Fi
nishedgoods 1
1,40
0u ni
t
s
*T
wo(2)unit
sofrawma t
eri
alar
eneededtopr
o duceeachuni
toffi ni
shedpr
oduct
.
Rawma t
er
ial
s 24,
400kg.
I
f5 0
0,00
0fi nisheduni
tswe r
etob ema nuf
actur
edd ur
in
gth e2 0
06-200
7fi sc
alyea
rby
Dur
ingth
ep roduct
i
onp r
ocess,i
ti
su s
ual
lyf
oundthat1
0%o f
product
i
onuni
tsar
escrapp
edas
St
ramaComp any,theuni
tsofr
awma t
eri
alneededtobepurc
hasedwo ul
dbe
de
fect
iv
ea ndthi
slossoccur
sa f
t
erthera
wma t
e r
i
alshav
ebeenpl
a c
edinp
roces
s.
Howma nykil
ogr
amso frawma t
er
ia
lsshoul
dbep ur
chas
edi
nJ u
ne? A.1 ,
000,
0 0
0u ni
ts C.1 ,020,
000uni
t
s
A.8 9,
800 C.9 6,
000 B.1 ,
010,
0 0
0u nit
s D. 9 90,
000uni
t
s
B. 98,
440 D.9 9,
400 1
6
. Diliman Corporation includes the following quarterly budget for production:
1
3
. Vi
ol
etCompanyma nuf
act
ure
sas i
ngl
ep r
oduc
t.Itkeepsit
sinven
tor
yo ffini
shedgood
sat Quart
er Pro
du c
ti
on
t
wic
ethecomingmonth’
sbudget
edsal
es,i
nve
ntor
yofrawma te
ri
al
sa t150
%o ft
hecomin
g Fir
st 60,000uni
ts
mont
h’
sb udge
tedprodu
cti
onrequ
ir
ements
. Eachunitofpro
ductre
q u
ir
estwopoundsof Second 45,0
00u ni
ts
mat
eri
al
s.Theprodu
cti
onbudge
tsi
nuni
tscons
ist
ofth
ef o
ll
owi
ng:. Thi
rd 40,000uni
ts
May 1,00
0 F
ourt
h 65,000uni
ts
Ju
ne 1,20
0 Eac
hu ni
tofpr
oduc
trequi
res2.
5ki
lo
gramsofdi
rec
tmate
ri
al
s .Thec o
mp a
nyb eg
inse
ach
Ju
ly 1,30
0 qu
art
erwit
hinve
nto
ryofdir
ectmat
er
ial
sequalt
o25perc
entofthetot
alquar
te
r’
sma t
er
ia
l
Augu
st 1
,600 r
equi
re
me nt
s.
Rawmater
ia
lpurc
hasesi
nJunewoul
dbe Whati
sthebud
gete
dp ur
chase
sofmat
eri
al
sfort
hesec
ondquart
er?
A.2 ,
600pounds C.2 ,
400p ou
nds A.1 1
3,750 C. 4 6,
250

439
 Budget
ing

B.1
09,
375 D.1
12,
500 B.P6
91,
000 D.P9
87,
000
2
1
I
n di
rec
tlaborcosts .AdelComp a
n yhasthefol
lo
wingsal
esfor
ecas
tsfort
hesele
cte
dth
ree-
monthper
iodi
n2007:
1
7
.Na mu co
,Inc.usesfl ex
ibl
eb udg
eti
ngforcostco
ntr
o l
. Dur
ingthemo nt
ho fSeptember
, Month Sal
es
Namu co
,Inc.prod
uced1 4
,500uni
tsoffi ni
she
dg oodswit
hindi
re
ctlaborcos
tsofP25,3
75. Apri
l P12,
000
It
sannualma s
terbudgetr
efl ect
sanindi
r
ectl
aborcost
s,avari
abl
ec o
st,ofP360
,000based May 7,
000
onana nnu
al p
roduct
ionof200,
000uni
ts
.Inthepre
parat
ionofpe
rfo
rmancea na
lys
isf
orthe June 8,
000
mo n
thofSeptember,
ho wmuchfl exi
bl
ebudgetsho
uldbeall
owedfori
ndir
ectl
aborcos
ts? Sevent
yp ercentofsalesarecoll
ect
edinthemo nthofthesal
e,andtheremai
nderi
s
A.P3 0
,000 C.P2 5,
37 5 co
ll
ecte
di nthefol
lo
wingmo nt
h.
B.P2 9
,167 D.P2 6,
10 0 Accountsrecei
vabl
eb al
anc
e(Apri
l1,20
07 ) P10,
000
Cashb al
a nc
e(Ap r
il
1,2007) 5,
000
Cashre
ceipt
sb udget Mi
nimumc ashbalan
c eisP5,00
0.Ca shcanb eborr
owedinP1,
000in
crement
sfromth
e
Sal
es l
ocalbank(assumen oint
er
estchar
ges)
.
1
8
.Ge ner
ousCo mpanybeganit
soperat
i
onsonJanu
ary1o ft
hecurr
entyear
.Bu d
get
edsal
es Howmu chc ashwoul
db ecoll
ect
edinJun
efroms al
es?
f
orthefi r
stq u
art
era r
eP2 40,
000,P300,
000
,a ndP4 20
,000,res
pect
iv
ely
,forJan
uary, A.P 7 ,700 C.P 8 ,0
00
Feb
ruar
ya ndMa r
ch.Gene r
ousCompanyexp
ect
s20%o f
it
ssale
sc as
handtherema
inder B.P 8 ,500 D.P1 0,
000
onacco
un t
.Of t
hesal
eso nacco
unt,7
0%a r
eexpec
tedtobecol
lect
edint
hemo nt
hofs
ale,
25%inthemonthfol
l
owin
gt hesal
e,an
dther
emaind
erinthef
oll
owin
gmo nt
h. 2
2
.TheAveli
naComp a
nyhasthefol
l
owingh i
st
ori
calpatt
er
no nit
scr
edi
tsal
es.
Howmu chshoul
dGe n
erousrec
eiv
efromsal
esi
nMa r
ch? 7
0 p er
centcol
l
ecte
dinmo nt
ho fsal
e
A.P3 04,
800 C.P3 88,
800 1
5 p er
centcol
l
ecte
dinthefi rstmont
ha ft
ersal
e
B.2 94,
000 D.P2 95,
200 1
0 p er
centcol
l
ecte
dinthesecondmo nt
ha ft
ersal
e
4 p erc
entcol
l
ecte
dinthethi
rdmo nt
haftersal
e
Cre
dit
sale
s 2 p erc
entunco
ll
ect
ibl
e
1
9
.Me ndr
ezCompanyhasacol
l
ect
ions
chedu
leof60%d ur
ingth
emo n
thofsal
es,15
%t h
e Th
es a
lesonopenaccounthav
eb eenbudget
e dforth
elastsi
xmont
h sof2
007ar
eshown
f
oll
owi
ngmo nt
h,and15%subs
eque
ntl
y.Theto
talcr
edi
ts a
lesint
hecurr
entmonthof be
low:
Sept
emberwer
eP8 0
,00
0an
dtota
lcol
l
ect
io
nsinSepte
mb e
rwe r
eP57,
000
.Wh atwer
eth
e Jul
y P6 0
,00
0
cr
edi
tsal
esi
nJuly
? August 70
,00
0
A.P9 0,
000 C.P4 5
,000 Sept
ember 80
,00
0
B.P3 0,
000 D.P3 2
,000 Octo
ber 90
,00
0
November 100
,00
0
Cas
hc ol
l
ecti
ons December 85
,00
0
2
0
.Ob l
igac
ionComp a
nyh a
sP2 99,
000i
na cco
untsr
ece
iva
bleonJan
uary1,200
6.Budge
ted Th
ee s
ti
matedtot
alca
shc ol
l
ect
ionsduri
ngthefo u
rt
hc al
endarq
uar
terfr
omsal
esmadeon
sa
lesfo
rJ a
nuaryar
eP8 6
0,00
0.Ob l
i
gaci
one x
pec
tst
os e
ll20
%ofit
smerch
andis
efo
rca
sh. op
e naccountd
uri
ngthefour
thcal
endarquar
terwo u
ldbe
Oftheremain
ingsal
es,75%a reexpec
tedtobecol
le
ctedint
hemo n
thofsalea
ndthe A.P1 7
2,500 C.P2 65,
400
r
ema i
ndert
hefol
lo
wingmonth
. B.P2 3
0,000 D.P2 51,
400
TheJanuar
ycashcol
lec
ti
onsfr
oms a
lesar
e:
A.P8 15,0
00 C.P471,
000 2
3
.T
heL
eAmo
reCo
mpa
nyh
adt
hef
ol
lo
win
gbu
dge
teds
ale
sfo
rth
efi
rsth
alfo
fth
ecu
rr
ent

440
 Budget
ing

y
ear
: Sal
esthr
eemo nt
hspr
iort
oc u
rre
ntmon
th 4%
Ca
s hSal
es Cr
edi
tSal
es Cas
hd i
scount
s(2/
30,n
e t
/90
) 2%
Ja
nuary P70,
000 P340,
000 Doub
tf
ulaccount
s 1%
Feb
ruar
y 50,
000 190,
000 Cr
edi
tsale
s:
Marc
h 40,
000 135,
000 November–esti
mat
ed P2,
000
,00
0
Apr
il 35,
000 120,
000 Octo
ber 1,
800
,00
0
May 45,
000 160,
000 Sept
emb er 1,
600
,00
0
Ju
ne 40,
000 140,
000 August 1,
900
,00
0
Howmuchistheest
imat
edc r
edi
ttoAcc
oun
tsRec
eiv
abl
easare
sul
tof
col
l
ect
i
onsexp
ect
ed
T
hecompan
yisi
nth
eproc
essofp
repa
ri
ngacashbu
dgeta
ndmust
det
ermi
neth
eexpec
ted du
ri
ngNo v
ember?
c
ashc
oll
ect
i
onsb
ymo n
th.
Toth
isend
,thef
ol
lo
wingi
nf
or
mati
onh
asbee
na s
sembl
ed: A.P1 ,
730,
200 C.P1,76
2,0
00
B.P1 ,
757,
200 D.P1,80
2,0
00
Co
ll
ect
i
onso
nsa
les
: 60
%i nmont
ho f
sale
30
%i nmont
hfol
lowi
ngsal
e I
n c
rea
seinacco
untsre
c e
iva
ble
2
6
10
%i nsec
ondmo nt
hfo
ll
owin
gsal
e .L azar
oComp anywil
lopenanewst
or
eonJan
u a
ry1.Basedo
nex
per
i
enc
efr
omi
t
sot
her
Th
ea c
count
srecei
vab
leba
lanc
eonJanu
ary1o ft
hecurr
entyearwasP70,
000
,ofwhi
ch ret
ai
lout
l
ets,
Lazaroismaki
ngt
hef
ol
lo
win
gsa
lespro
jec
ti
ons
:
P5
0,00
0r epr
ese
ntsu n
col
l
ect
edDe c
embersal
esa ndP20,000repr
esent
suncol
l
ect
ed
Nov
embersal
es. CashSale
s Cred
itSal
es
Th
etot
alcas
hcoll
ect
edbyLeAmor
eCompanyduri
ngt
hemo nt
hofJanua
rywoul
dbe: January P600,
000 P400,
000
A.P4 1
0,0
00 C.P3 44
,000 Februar
y 300,00
0 500,
000
B. P25
4,0
00 D.P3 31
,500 Ma r
ch 400,00
0 600,
000
Apri
l 400,00
0 800,
000
Ac c
ount
srecei
vabl
ebala
nc e Laz
aroe s
ti
matesth
at7 0
%o fthecred
itsal
eswillb
ecoll
ect
edinthemo n
thfol
lo
wingt
he
24
.Aso fJan
uary1,2007,theLi
beralSal
esCompanyhadana cc
ountr
ecei
vabl
eofP500,
000. mont
ho ft
hes a
le,
withth
eb a
lan
cec ol
l
ect
edintheseco
ndmo nt
hfol
lowi
ngthesal
e.Bas
ed
Th
es al
esfo
rJanuary,Febr
uary
,a ndMar
chwe r
easfoll
ows:P1,20
0,000
,P1,4
00,00
0a nd ont
hesed at
a,t
hebalan
ceinacc
o u
ntsrec
eiva
bleonJan
uary31wil
lbein
creas
edby
P1,
500,
000,r
espect
iv
e l
y.Ofeachmo n
th’
ssal
es,80%isonaccou
nt.6 0
%o fac
countsa
les A.4 00,
000 C.P1 20,
000
i
scol
le
ctedi
nthemo nthofs
ale,wi
thremai
ni
ng40%c o
ll
ecte
dinthefo
ll
owin
gmo nt
h. B.P2 80,
000 D.P5 80,
000
Whati
stheaccou
ntsrecei
vabl
eb a
lanc
easo f
March31,2007
?
A.P7 20
,000 C.P5 87,2
00 Cas
hd i
sbursements
2
7
B.P4 80
,000 D.P6 00,0
00 .Ca sc
adesCo mpany
,ame rc
h a
ndisi
ngfi r
m,ispre
pari
ngit
smast
erbu
dgetan
dh asgat
her
ed
t
hefol
lo
wingdat
atoh el
pbudgetcashdi
sbur
sement
s:
Cre
dit
toacc
ountsrecei
vab
le Budget
eddat
a:
2
5
.Ironma
nCo mp anyispre
par
in
git
sc as
hb udge
tfo
rthemon
thendi
ngNo
vember30
.T he Costofg
oodssold P1,
680,00
0
f
oll
owi
ngin
formati
onpert
ai
nst
oIr
onman’spas
tcol
l
ect
i
onex
peri
enc
efr
omi
tscr
edi
tsa
les: Desi
reddecr
easei
ninvent
ori
es 7
0,00
0
Cur
rentmonth’
ssal
es 12% Desi
reddecr
easei
nAc co
u n
tsPayabl
e 15
0,00
0
Pr
io
rmo nth
’ssal
es 75% Al
lofthea ccou
ntsp ay
abl
e sa r
ef o
rinve
ntor
yp ur
chas
esa n
da l
lin
vent
oryit
emsa r
e
Sal
estwomo nt
hspri
ort
ocur
ren
tmo nt
h 6% pu
rchas
edo naccount
.Wh ataretheest
i
ma t
edcashdi
sbur
sement
sfo
rinv
ent
ori
esfort
he

441
 Budget
ing

bu
dge
tperi
od? a
. Eachmo n
th’
ssal
esarebi
ll
edonthela
stdayoft
hemo nt
h.
A.P1,4
60,0
00 C.P1
,90
0,0
00 b
. Cust
ome r
sa r
ea l
l
oweda3p e r
cen
tdisc
ounti
fpaymentisma dewit
hin10
B.P1,6
00,0
00 D.P1
,76
0,0
00 d
aysaf
t
erthebi
ll
in
gd at
e.Recei
vabl
esarebook
edgross
.
c
. Six
typerc
entofth
ebil
li
ngsarecol
l
ect
edwithi
nthedis
countper
iod,t
wenty
-
2
8
.Al
bat
rossCo mpanysta
rt
e dit
scomme rci
aloper
ati
onsonSeptember30o ft
hec ur
ren
ty e
ar. fivepe
rcentar
ecoll
ect
edbyth
ee ndofth
emo nt
h,ni
neperce
ntarecol
lec
tedbytheend
Pr
oj
ectedma nufac
tur
ingc o
stsforthefi r
stthr
eemo nth
so fo per
ati
onsa r
eP1 ,
56 8
,000
, o
fth
esecondmonth,a
nds i
xper
centar
ec o
nsi
der
ede n
ti
rel
yuncol
le
cti
ble
.
P1,
952,
00 0,andP2 ,
176,00
0,respect
ivel
y. Depr
ecia
ti
on,insur
ance,andp ro
pert
yt ax
es
r
epr
esentP2 88,00
0o ft hee st
imate
d ma nuf
act
uri
ngc ost
s. I n
surance wasp ai
do n Pur
chas
es:
Sep
tembe r30,an
dp r
opert
ytaxeswil
lbep ai
dinJul
yn e
xtyear
.Se vent
y-fi v
ep er
centoft
he 1. F if
tyfourperc
en tofal
lpur
chasesands el
l
ing
,g e
nera
l,andadmi
ni
st
rat
i
vee x
pens
es
r
emaind
e rofth
ema nuf
actur
ingcost
sa r
eexpect
edtobep a
idinthemo n
thinwhicht
heya r
e ar
epaidinthemo nthpur
cha
sedan dtheremai
nderi
nthefo
ll
owi
ngmont
h.
i
ncur
red
,wi ththebalancetob ep ai
dint hefol
lo
wingmo nt
h. Th eca s
hp ayment
sf or 2. Ea chmo n t
h’
su nit
sofendi
nginvent
oryisequalt
ooneh u
ndre
dthi
rt
yperce
ntoft
he
manuf
acturi
ngcost
sinthemo nt
ho f
No v
emb e
ra r
e: ne
xtmo nt
h’suni
tso fs
ale
s.
A.P1 ,
56 8,
000 C.P1 ,6
64,0
00 3. T hec o
s tofea
chu ni
tofi
nvent
oryisP200.
B.P1 ,
95 2,
000 D.P1 ,8
56,0
00 4. Se ll
in
g,g ener
al,andadmin
ist
rat
iveex p
ense
s,ofwhic
hP2 0,
000i
sdepre
ciat
i
on,ar
e
eq
ualtofi f
t
eenp erc
entof
thecurren
t mont
h’
ssales
.
End
ingc a
s hbal
ance
2
9
.Albani
aCo mpanyexpect
sit
sJunesal
estobeP3 0
0 ,
000,whichi
s2 5%high
erthanit
sMa y Ac
tua
lan
dpr
oj
ect
eds
ale
sar
easf
ol
lo
ws:
sa
les.Pur
chaseswer
eP2 00
,000i
nMaya ndareexpe
cte
dt obeP2 40,
000i
nJ une
.Allsal
es UNI
TS PESOS
ar
eo nc r
edi
tanda r
ecoll
ect
edasfol
l
ows:80 %inthemo nthofthesal
ea nd20%i nthe Nove
mber 11
,80
0 P3
,54
0,0
00
f
ol
lowi
n gmonth
.Allpa
ymentsi
nthemont
ho fsal
esaregiv
e n2%d is
count
.Six
typerce
ntof Dece
mb e
r 12
,10
0 3
,63
0,0
00
pur
chasesarepai
dinthemo n
thofpur
chasetotak
ea dvant
ageo fpur
chas
etermo f1/
10, Ja
nuary 11
,90
0 3
,57
0,0
00
n/
40.Theremaini
ngamounti
sp a
idi
nthefol
lowi
ngmo n
th.Theb egi
nni
ngcashbala
n c
eo n Feb
ruar
y 11
,40
0 3
,42
0,0
00
Ju
ne1i sP20,
000.Theendi
ngcashb
alan
ceo nJune30wo ul
db e
: Marc
h 12
,00
0 3
,60
0,0
00
A.P6 4,16
0 C.P8 0,
640 Apr
il 12
,20
0 3
,66
0,0
00
B.P7 3,00
0 D.P8 5,
440
3
0
.Ther
espec
ti
veamou
ntsofbud
get
edp
urc
has
esf
ort
hemo nt
hsofJan
uarya
ndF
ebr
uar
y
Comprehensi
ve ar
e:
Quest
i
onNo s.3
0throu
gh33areb
asedonthef
oll
owi
ngi
nfo
rmati
on: A.P2,4
18,00
0andP2,
360,
000 C.P2,
250
,00
0a ndP2
,43
6,0
00
Ap
oll
oMe rcha
ndis
erasksyo
urser
vic
estodevel
opcas
ha ndoth
erbudg
eti
nf
or
ma t
i
onforth
e B.P2,3
80,00
0andP2,
280,
000 D.P3,
570
,00
0a ndP3
,42
0,0
00
firstquar
te
rof2007.InDe
cember31,
thest
or
eh a
dth
efol
lowi
ngbal
anc
e:
Cash P 5 5,
000 3
1
.Th
ebu
dget
edcas
hdi
sbu
rse
men
tsf
ort
hemo
ntho
fFe
bru
aryar
e:
Accou
ntsrec
eiv
abl
e 4,
370,0
00 A.P2,
929
,00
0 C.P2,
949,
000
I
nvent
ori
es 3
,094,
000 B.P2,
873
,79
0 D.P2,
853,
790
Accou
ntspayab
le 1
,330,
550
3
2
.Th
eamoun
tofcas
hco
ll
ect
edf
r
oms
ale
sdu
ri
ngt
hemont
hofJa
nua
ryi
s:
T
hef
ol
lo
wingi
nf
or
mat
i
ona
rer
el
eva
ntt
o20
07o
per
at
io
ns: A.P3,
338,
760 C.P3,
404,
100
Sa
les
: B.P3,
551,
160 D.P3,
556,
560

442
 Budget
ing

3
4
.Howmuchwi
l
lbep
aidi
nth
emo
ntho
fJa
nua
ryfo
rth
epurc
has
eof
mat
er
ia
ls?
3
3
.Th
enu
mbero
fun
it
stob
epu
rch
ase
ddu
ri
ngt
hemo
nthof
Mar
chi
s: A.P2 7,
200 C.P137
,85
6
A.15
,86
0 C.12,
000 B. P1
17,
200 D.P3 3
,60
0
B.12
,26
0 D.15,
600
3
5
. Howmuchdoe
sAt
l
ant
apl
ant
odi
sbu
rsei
nth
emont
hofJu
ne?
Raj
ahEnt
er
pri
sesi
sagrowi
ngr
eta
il
ero
fhomecar
eprod
uct
s.Du
ri
ngt
hefi
rst
fou
rmo
nth
sof
the A.P4 1,6
00 C.P20
7,2
00
f
ol
lo
wingy
ear
,itf
or
eca
ststh
efo
ll
owi
ngsal
esan
dpurc
hases
: B. P1
00,
000 D.P11
7,2
00

Sal
es Pu
rch
ases Quest
ionNos
.36th
roug
h3 8ar
ebasedonthef
ol
lo
win
g:
Ja
nuary P7,
200,
000 P4,
200,
000 SuperSal
es’
act
ualsa
lesandpur
chase
sforApr
il
andMaya
res
hownh
erea
lon
gwi
t
hfo
rec
ast
ed
Febr
uar
y 6,
600,
000 4,
800,
000 sa
lesandpur
chas
esforJu
neth
roug
hSe pt
ember
.
Marc
h 6,
000,
000 3,
600,
000
Apr
il 7,
800,
000 5,
400,
000 Sal
es Pur
cha
ses
Raj
ahcol
l
ect
s70%ofsal
esi
sco
ll
ect
io
nd u
ri
ngthemontho
fsal
e,2
0%t
hef
ol
lowi
ngmont
han
d Apr
il
(Act
ual
) P3
90,
000 P2
00,
000
9%int
heseco
ndmo
n t
h.1%ofs
ale
sa r
edeemeduncol
l
ect
i
ble
. May(Ac
tual
) 4
20,
000 2
20,
000
Ju
ne(fo
recas
t) 3
90,
000 2
10,
000
I
norde
rtof
ul
lya
vai
lof
the2%dis
cou
nt,Ra
jahp
aysa
llt
hep
urc
has
esb
yth
ete
ntho
fth
emo
nth Ju
ly(f
or
ecast
) 3
50,
000 2
40,
000
f
ol
lo
wingt
hemont
hofp
urch
ase
. Augu
st(f
ore
cast
) 4
20,
000 3
20,
000
Sept
ember(f
or
ecas
t) 4
10,
000 2
30,
000
Sal
esf
orthemont
ho fMayar
ee xp
ect
edtob
eP6,
600,
000an
dthea
mo u
nto
fpur
chas
esare
P6,
000
,00
0.Op e
rat
in
ge x
pens
estobepai
ddu
ri
ngt
hemont
hofMa
ywi
llb
eP1,
440
,00
0a ndt
he Thecomp
anyma k
es10perce
ntofi
tss
alesfo
rcashand90per
cent
o ncr
edi
t.Ofthec
redi
tsal
es,
ca
shbal
ancebyMay1isP2,
200,
000. 30per
cen
tarecol
l
ecte
dinth
emo nt
haf
terth
es al
ean
d7 0pe
rcen
tarecol
le
ctedtwomont
hsa f
t
er.
Supe
rSal
esp a
ysfor45pe
rcen
tofi
tspur
chasesi
nthemont
haft
erpurc
hasea n
d5 5pe
rcentt
wo
T
heAt
l
ant
aCo
rpo
rat
i
onh
asf
or
eca
stt
hef
ol
lo
win
gsa
lesf
ort
hefi
rst
sev
enmo
nth
sof
they
ear
: mont
hsaf
ter
.

Ja
nuary P1
20,
000 May P1
20,
000 Lab
orexpe
n s
eequal
s1 5per
cent
ofthecur
ren
tmo nt
h'
ssa
les
.Genera
lover
headexp
enseequa
ls
Feb
ruar
y 1
60,
000 Ju
ne 2
00,
000 P10,
000permon
th.I
nte
res
tpayment
sofP35,
000areduei
nJunea
ndSe p
tember
.Acashdi
vi
dend
Marc
h 1
80,
000 Ju
ly 2
20,
000 ofP25,
000issched
uledt
ob epaidinJune.Taxpayme
ntsofP30,
000a r
ed u
einJ un
ea nd
Apr
il 2
40,
000 Sept
ember
.Ther
eisasche
duledpur
chas
eforcas
ho f
anequi
pmen
t,P290
,000i
nSepte
mber.

Month
lymater
ia
lpur
chasesares e
tequal
to20p erc
entoff
or
eca
ste
ds a
lesf
orthenex
tmo n
th.Of Supe
rSa l
es’endi
ngcashbal
anceinMayisP2 5,
000
.T hemin
imu
md esi
r
edc a
shb a
lanc
eis
t
hetotalmate
ri
alcost
s,40p er
c e
ntarepai
di nthemo n
thofpur
chaseand6 0per
centi
nt he P20,
000
.T hema x
imumd e
sir
edcashbal
anc
eisP50,0
00.Exc
essca
sh(ab
oveP50,0
00)i
su s
ed
f
ol
lowi
ngmo nt
h.Lab
orcost
swi l
lr
unP60,0
00p ermonth
,andfixedover
headi
sP30,000permont
h. t
ob u
yma r
ketab
lesecur
i
ti
es.Mark
eta
blese
curi
t
iesar
es o
ldbef
or
eborr
owi
ngfu
ndsincaseofa
I
nt
erestpayment
sonthed ebtwil
lbeP45,00
0f orbot
hMa r
chandJune.F
inal
l
y,Atl
ant
a’
ss al
es ca
shshor
tf
all(
l
esstha
nP2 0
,000)
.
f
or
cewi l
lr
ecei
vea3p erc
e n
tc ommis
si
ono ntot
alsal
esfort
hefi r
stsi
xmo n
thsoft
heyea r
,tobe
3
6
pa
idonJ u
ne3 0
. . Du
ri
ngt
hemon
tho
fJu
ne,
Sup
erSa
lese
xpe
ctstor
ece
ivecas
hfr
oms
ale
samo
unt
i
ngt
o:
A.P60
6,0
00 C.P398,1
00

443
 Budget
ing

B. P4
08,
900 D.P3
59,
100 c
ut,
thr
eaded,an
dfi ni
shed
.Lasty
earrawma t
er
ial
c o
stswer
eP5 2per1,
000fast
ener
s,butMs.Te
e
h
asjustbeenn ot
i
fi edthatma t
er
ialcos
tsh a
ver i
sen,eff ect
i
veJ an
u ar
y1 ,t
oP6 0p er1,0
00
3
7
.Th
ecumul
at
iv
eamo
unt
ofma
rke
tab
les
ecu
ri
ti
esp
urc
hasedaso
fJu
ly3
1amo
unt
sto
: f
ast
ener
s.T heIn
g oCorpor
ati
onu s
esFI F
Oi nvent
orya c
coun
ting
.L ab
orc ost
sa r
er el
at
iv
ely
A.P126,
000 C.P1 4
3,30
0 c
onst
antatP20perth
ousandfa
ste
ners,s
inc
ewo r
kersarepai
donap i
eceworkbasi
s.Over
headis
B. 1
32,
500 D.P0 a
ll
ocat
edatP10perthous
andunit
s,an
ds el
l
ingandadmini
st
rat
i
vee xp
enseis20percento
fsal
es.
L
aborexpe
nseando v
erhea
da r
edir
ectcas
ho ut
fl owspai
dinthemo n
thi
ncurr
ed,whil
eint
er
estand
3
8
.Th
eamo u
ntof
loa
ntob
eob
tai
nedt
oma
int
ai
nab
ala
nceofP5
0,0
00c
asha
sof
Sep
temb
er3
0 t
axe
sa r
epaidquar
ter
l
y.
wi
l
lbe:
A.P109.
4 C.P 9 .
4 T
hecorpor
at
ionusual
l
yma i
nt
ai
nsami ni
mumc ashbala
nceofP25,0
00,andit
putsi
tsexc
essca
sh
B. P59.4 D.P 0 .
0 i
nt
oma r
ket
ablesecu
ri
ti
es.Th
ea ve
raget
axrateis40p er
cent
,andthecompanyusua
ll
ypaysout
5
0p e
rcent
of ne
tinc
omeindivi
dend
stostoc
kholde
rs.Marke
tabl
esecur
it
ie
saresol
db ef
or
efun
ds
Ques
ti
onNo
s.39t
hrou
gh45a r
ebasedonth
efoll
owi
ngdat
a: a
reborr
owedwh enac a
shshort
ageisfac
ed.Ignoreth
einter
estonanyshort
-t
er
mb orr
owi
ngs.
Th
eIngoCor
por
at
ionmakesst
andar
d-s
ize2-
in
chfas
ten
ers,whi
chi
tse
ll
sforP15
5pe
rtho
usand
. I
nt
er
estonthelo
ng-t
ermdebti
spai
dinMa r
ch,asareta
xesanddivi
dend
s.
I
ri
neTee,t
hema j
orst
ockho
lder
,ma n
agestheinv
ent
orya n
dfi nanc
eso ft
hecompa
ny.She
es
ti
mate
ssa
lesf
ort
hefol
l
owin
gmo nt
hstobe: Asofy
ear
-end,
theIng
oCo
rpo
rat
i
onb
ala
nces
hee
twa
sasf
ol
lo
ws:
I
ngoCorp
orat
i
on
Ja
nuary P2
63,
500 (
1,
700
,00
0fa
ste
ner
s) Bal
anc
eSh e
et
Feb
ruar
y P1
86,
000 (
1,
200
,00
0fa
ste
ner
s) Dec
ember31,2006
Marc
h P2
17,
000 (
1,
400
,00
0fa
ste
ner
s)
Apr
il P3
10,
000 (
2,
000
,00
0fa
ste
ner
s) ASSETS
May P3
87,
500 (
2,
500
,00
0fa
ste
ner
s) Cur
rentass
ets:
Cash P 30,0
00
L
astye
arIngoCorp
ora
ti
on'
ssa
leswe
reP1
75,
000i
nNo
vemb
era
ndP2
32,
500i
nDe
cemb
er Acco
u n
tsrec
eiv
abl
e 32
0,0
00
(
1,
500
,000f
ast
ene
rs)
. I
nvent
ory 23
7,8
00
To
talcu
rr
entass
ets 58
7,8
00
Ms.T
eeispre
p a
ri
ngforameet
in
gwithPeni
nsul
aBank
ingCorpor
at
iontoa
rran
gethefi n
anci
ngf
or Pl
antandequi
pment
,net
ofa
ccu
mul
at
edd
epr
eci
at
io
nof
P20
0,0
00 80
0,0
00
t
hefi r
stquart
er
.Basedonhersal
esfor
ecas
tandth
ef o
ll
owin
ginf
o r
mat
ionshehaspr
ovi
ded
,you Tot
alAsse
ts P1
,38
7,8
00
ha
vetopr
epareamo n
thl
yca
shbu d
get,
amo nt
hl
yandquart
er
lypr
oformai
ncomestat
ement
,apr
o
f
or
maq u
a r
te
rl
yb al
anc
esheet
,andal
lnece
ssar
ysupp
ort
ingsched
ule
sfort
hefi rs
tquar
te
r. LI
ABIL
ITI
ESANDST OCKHOLDERS’
EQUI
TY
Acc
ount
sp a
yabl
e P 93,6
00
Pas
th is
tor
ys howstha
tIngoCorpor
ati
oncol
lec
ts5 0per
centofit
saccount
srecei
vabl
einthe Lo
ng-t
ermdebt
,8% 40
0,0
00
nor
ma l30-
dayc r
edi
tper
iod(
themo n
thaft
erth
es al
e)andtheoth
er50pe r
centi
n6 0day
s( t
wo Commonstoc
k 50
4,2
00
mont
h saft
erthesal
e)
.Itpay
sfori
tsma t
er
ial
s30d aysa
ft
errecei
pt
.Ingener
al
,Ms .Te
elik
esto Ret
ai
nedearni
ngs 39
0,0
00
ke
epat wo-monthsuppl
yofinv
entor
yina nt
i
cip
ati
ono fsal
es.In
vent
or
ya ttheb eg
inni
ngo f To
talL
iabi
l
it
i
esandSt
ockh
old
ers
’Equ
it
y P1
,38
7,8
00
Decemberwa s2,
600,
000uni
t
s.(T
hiswasnotequa
ltoherde
sir
edtwo-
monthsuppl
y.
)
3
9
.Th
ebu
dget
edpr
oduc
ti
onre
spec
ti
vet
oea
chmo
ntho
fthefirst
quar
t
eroft
hec
omingy
eara
re:
T
hema
jorc
osto
fpr
odu
cti
oni
sth
epu
rch
aseo
fra
wma
ter
i
alsi
nth
efo
rmo
fst
eel
rod
s,wh
icha
re A.1,
400
,00
0;2
,00
0,00
0;2,
500,
000 C.2 ,
500,
000
;2,0
00,
000
;1,
400
,00
0

444
 Budget
ing

B. 1
,40
0,0
00;
2,5
00,
000
;2,
000
,00
0 D.2
,00
0,0
00;
1,4
00,
000
;2,
500
,00
0 uni
f
orml
yt hr
oughou
tth
emo nt
h.T hesalesval
ueofshi
pmen
tsforMayandthef
or
ecast
sfort
he
nex
tfou
r month
sfol
l
ow:
4
0
.Th
ea moun
tofa
cco
unt
spa
yab
lep
aidi
nMa
rchfo
rth
epurc
has
eof
mat
er
ia
lsi
s: May(a c
tua
l) P500,0
00
A.P1 5
0,00
0 C.P1 0
4,0
00 June 6
00,0
00
B. P12
0,00
0 D.P1 3
0,0
00 Jul
y 7
00,0
00
August 7
00,0
00
4
1
.Th
ee x
pect
edc
ashc
oll
ect
i
onso
nac
cou
ntsr
ece
iva
blei
nth
emon
tho
fFe
bru
arya
re: September 4
00,0
00
A.P2 2
4,7
50 C.P9 3,00
0 Russ
onp u r
chas
esmercha
ndis
ef orres
aletome e
tthecur
ren
tmo nt
h’ssal
esdemandandto
B. P24
8,0
00 D.P1 8
6,00
0 mai
ntai
nad esi
redmont
hl
ye n
dinginv
ento
ryof25%o ft
hene
xtmo nt
h’
ssal
es.Al
lpurc
hasesar
e
oncred
itwitht
ermsofnet
/30.Ru ss
onp ay
sfor50%o famonth’
sp u
rch
asesi
nthemo nt
hof
4
2
.Th
ea moun
tofa
cco
unt
sre
cei
vab
leo
uts
tan
din
gaso
fMarc
h3 1,
200
7is
: pur
chaseand50%inthemont
hfoll
owi
ngthepurc
hase.
A.P2 1
7,00
0 C.P31
0,000
4
6
B. P22
4,75
0 D.P10
8,500 . Howmuchc
ashc
anRu
sso
npl
ant
oco
ll
ect
inSep
temb
erf
romsa
lesma
dei
nAu
gus
t?
A.P337,
400 C.P400,
400
4
3
.Th
ec o
stofgoo
dss
oldf
ort
hefi
rst
qua
rt
ero
fth
eco
mingyea
ramo
unt
sto
: B. P3
43,
000 D.P280,
000
A.P3 63
,80
0 C.P426
,40
0
4
7
B. P453
,60
0 D.P373
,40
0 .Th
ebud
gete
dp e
sov
alu
eof
Rus
son
’si
nve
nto
ryonAu
gust3
1wi
l
lbe
A.P110
,000 C.P112
,00
0
4
4
.Th
etot
alca
sha
ndma
rke
tab
les
ecu
ri
ti
esa
sof
Jan
uar
y31wil
lbe
: B. P80
,000 D.P100
,00
0
A.P45,4
50 C.P91,
800
4
8
B. P2
5,0
00 D.P54,
450 . Howmuchc
ashc
anRu
sso
npl
ant
oco
ll
ect
fr
omacc
ount
srec
eiv
abl
edu
ri
ngJ
uly
?
A.P574,
000 C.P61
9,00
0
4
5
.Th
ee x
pect
edn
eti
nco
med
uri
ngt
hefi
rst
qua
rt
ero
fth
ecomi
ngy
ear
is: B. P6
62,
600 D.P60
8,60
0
A.P9 1,0
80 C.P9 6,8
40
B. P16
1,4
00 D.P1 5
1,8
00

Que
sti
onNo s
. 46thr
oug
h4 8areb a
sedontheRus
sonCorpo
rat
io
n,are
tai
l
erwhosesal
esar
ea l
l
mad
eo ncr
e d
it.Sal
esarebi
ll
edtwic
emo nt
hl
y,o
nthe10
thoft
hemo n
thf
ort
helas
thal
foft
hepri
or
mon
th’
ss a
les,andonthe2 0
tho ft
hemo n
thfo
rthefi r
sthal
foft
hecur
ren
tmo nt
h’
ssal
es.T h
e
t
er
mso fallsale
sa r
e2 /1
0,net3 0. Ba
seduponpastexp
eri
ence
,th
ec ol
l
ect
ionofacco
unts
r
ece
iva
bleisasfol
lo
ws: