Figure 8-7 Macheski Company, an Importer and Retailer of Polish Pottery and Pottery

question 123

Multiple Choice

Figure 8-7
Macheski Company, an importer and retailer of Polish pottery and kitchenware, prepares a monthly master budget. Data for the July master budget are given below:
The June 30th balance sheet follows:
Actual sales for June and budgeted sales for July, August, and September are given below:
Sales are 20 percent for cash and 80 percent on credit. All credit sales are collected in the month following the
sale. There are no bad debts.
The gross margin percentage is 40 percent of sales. The desired ending inventory is equal to 25 percent of the following month's sales. One fourth of the purchases are paid for in the month of purchase and the others are purchased on account and paid in full the following month.
The monthly cash operating expenses are $43,000, and the monthly depreciation expenses are $7,000.
-Refer to Figure 8-7. What are the total assets at the end of July?

• A) $439,000
• B) $446,500
• C) $515,500
• D) $653,500

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Definitions:

Entrepreneurial Leadership

A leadership style characterized by innovation, risk-taking, and the exploitation of opportunities, often utilized in shaping new businesses or ventures.

Adaptive Leadership

A leadership approach focusing on encouraging and facilitating adaptation to changing environments or challenges.

Supportive Leadership

A style of leadership that involves offering encouragement, feedback, and resources to team members to foster an environment of trust and help individuals achieve their goals.

Participative Leadership

A leadership style where the leader involves team members in the decision-making process, fostering collaboration and team engagement.