Use the Information Below to Answer the Following Questions

question 30

Multiple Choice

Use the information below to answer the following questions.
Saddle Company, a leather manufacturer, has a sales budget of $500,000 for February. The cost of sales is estimated to be 35% of sales. All materials purchased by Saddle Company are paid for in the month following the purchase. The beginning inventory for February is $10,000, and an ending inventory of $11,000 is desired. The trade payables balance at the beginning of February is $88,000.
-Which of these is a question that could be asked when evaluating the implications of the cash budget?

• A) Is the profit level satisfactory?
• B) Is the level of gearing satisfactory?
• C) Is there any need for additional finance?
• D) All are questions that could be asked.

---

Definitions:

Pulse Oximeter

A medical device that noninvasively measures the saturation of oxygen in a patient's blood and changes in blood volume in the skin, providing a visual indication of the pulse rate.

Hypercapnia

Greater-than-normal amounts of carbon dioxide in the blood; also called hypercarbia.

Tracheal Suctioned

A medical procedure that removes secretions from the trachea to maintain airway patency and prevent infection.

Chest Tube

Catheter inserted through the thorax into the chest cavity for removing air or fluid; used after chest or heart surgery or pneumothorax.