Great Lake Corporation Wishes to Prepare a Cash Budget for November

question 61

Multiple Choice

Great Lake Corporation wishes to prepare a cash budget for November 2014.Sales,purchases,and expenses for October (actual) and November and December (estimated) are as follows: Sales: All sales are on credit,and the company's experience shows that,on an average,80 percent of sales are collected in the month of sale and the balance in the following month.A 2 percent discount is allowed on all collections in the month of sale.
Purchases: The company pays 60 percent of purchases in the month of purchase and the balance in the following month.The company is allowed an average discount of 1 percent on payments made in the month of purchase.
Expenses: The monthly expenses for November include charges for depreciation amounting to $1,000 and $100 of prepaid expenses,which will expire.All other expenses are paid as incurred.
Other: On September 1,2014,a new machine was purchased for $5,000.A down payment of $500 was made,and it was agreed that the balance would be paid in equal installments in the following three months.
-The cash payments in November for expenses of Great Lake are expected to be

• A)$12,500.
• B)$9,900.
• C)$10,000.
• D)$11,000.

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Definitions:

Organizational Leadership

The process of guiding and managing the efforts of members within an organization towards achieving the organization's objectives through strategic decision-making and effective communication.

Reward Systems

Mechanisms within organizations designed to motivate and incentivize employees by recognizing their contributions and achievements.

Team Cohesiveness

The extent to which team members are attracted to the team and motivated to remain part of it, leading to better teamwork, communication, and overall team performance.

Brooks's Law

A principle stating that adding more manpower to a late software project only makes it later.