The Following Information Pertains to the October Operating Budget for Flockhart

question 108

Multiple Choice

The following information pertains to the October operating budget for Flockhart Corporation.
∙ Budgeted sales for October $100,000 and November $200,000.
∙ Collections for sales are 60% in the month of sale and 40% the next month.
∙ Gross margin is 30% of sales.
∙ Administrative costs are $10,000 each month.
∙ Beginning accounts receivable (October 1) $20,000.
∙ Beginning inventory (October 1) $14,000.
∙ Beginning accounts payable (October 1) $60,000. (All from inventory purchases.)
∙ Purchases are paid in full the following month.
∙ Desired ending inventory is 20% of next month's cost of goods sold (COGS) .
∙ No loans are outstanding on October 1
-For October,budgeted cash payments for purchases are:

• A)$14,000.
• B)$60,000.
• C)$70,000.
• D)None of the above is correct.

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Definitions:

Corporate Strategies

Long-term plans made by a company to achieve competitive advantage and successfully operate in the market.

Human Resource Specialists

Professionals responsible for recruiting, screening, interviewing, and placing workers, as well as handling employee relations, payroll, benefits, and training.

Affirmative Action

Policies and procedures designed to promote the employment, education, or advancement of minorities and women, to correct past disadvantages.

Minority Group Members

Individuals belonging to a smaller segment within a population, often distinguished by racial, religious, ethnic, or socio-economic differences.