Avery IncWould Like to Prepare a Summary Cash Budget for June

question 112

Multiple Choice

Avery Inc.would like to prepare a summary cash budget for June.The following information is available:
?The cash balance at 1 June was estimated to be $\$ 6000$ .
?June sales, all on account, were estimated to be $\$ 75000$ . Sales are collected over a two-month period with 60 per cent collected in the month of sale and the remainder in the subsequent month. May sales on account were $\$ 70000$ .
?Inventory purchases are expected to be $\$ 50000$ in June. The company pays for one-half of inventory purchases in the month of purchase and the remainder in the subsequent month. May purchases were $\$ 60000$ .
?Cash disbursements for selling and administrative expenses are expected to be $\$ 9000$ in June.
?Depreciation expense for June is expected to be $\$ 3000$ .

What is the cash balance at the end of June expected to be?

• A) $15 000
• B) $12 000
• C) $26 000
• D) $29 000

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Definitions:

Excessive Sleepiness

A condition where an individual experiences significant and persistent drowsiness despite adequate or even prolonged night-time sleep.

Circadian Rhythms

Biological processes that follow an approximately 24-hour cycle, affecting sleep, behavior, and physiological processes in living organisms.

Melatonin

A hormone produced by the pineal gland that regulates sleep and wake cycles, often used as a supplement to treat sleep disorders.

Delayed Sleep Phase Type

A condition where an individual's sleep is delayed by two or more hours beyond the conventional bedtime, leading to difficulty in waking up at a desired time.