Gold Company Has the Following Balances at 31^st December 31

question 6

Multiple Choice

Gold Company has the following balances at 31^st December 31 2010: Cash $6,000; accounts receivable $34,000 ($10,000 from November and $24,000 from December) ; merchandise inventory $40,000; and accounts payable $20,000 (for merchandise purchases only) . Budgeted sales follow: Other data:
· Sales are 40% cash, 50% collected during the following month, and 10% collected during the second month after sale. A 3% cash discount is given on cash sales
· Cost of goods sold is 40% of sales
· Ending inventory must be 140% of the next month's cost of sales
· Purchases are paid 70% in month of purchase and 30% in the following month
· The selling and administrative cost function is: $6,000 + $0.2 × sales. This includes $1,000 for depreciation
· All costs are paid in the month incurred
· Minimum cash balance requirement is $6,000
What is the budgeted cost of purchases for February?

• A) $19,200
• B) $30,400
• C) $15,000
• D) $52,800

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Definitions:

REM Sleep

stands for Rapid Eye Movement sleep, a phase of sleep during which vivid dreams commonly occur, characterized by rapid movement of the eyes.

Memory

The capacity of the mind to store, retain, and recall information, experiences, and skills.

Sleep Apnea

A disorder characterized by pauses in breathing or instances of shallow or infrequent breathing during sleep.

Periodic Limb Movement Disorder

A sleep disorder characterized by repeated movements of the limbs during sleep, often leading to disrupted sleep and daytime fatigue.