Use the Following Information for Questions

question 29

Multiple Choice

Use the following information for questions.
On January 2, 2010, Indian River Groves began construction of a new citrus processing plant.The automated plant was finished and ready for use on September 30, 2011.Expenditures for the construction were as follows:
Indian River Groves borrowed $1,100,000 on a construction loan at 12% interest on January 2, 2010.This loan was outstanding during the construction period.The company also had $4,000,000 in 9% bonds outstanding in 2010 and 2011.
-What were the weighted-average accumulated expenditures for 2011 by the end of the construction period?

• A)$390,000
• B)$1,635,000
• C)$1,986,000
• D)$1,386,000

---

Definitions:

Disbursements

Payments made by a business, including expenses, cash distributions to shareholders, or investments.

Financing

The act of supplying capital for company operations, acquisitions, or investment activities.

Collections from Customers

The process or total amount of money received from customers in payment for sales of goods or services.

Cash Collected

The total amount of cash received by a company during a specific period.