The Following Data Have Been Taken from the Budget Reports

question 89

Multiple Choice

The following data have been taken from the budget reports of Kenyon Company,a merchandising company. $$\begin{array} { | l | r | r | } \hline & \text { Purchases } & \text { Sales } \\\hline \text { January } & \$ 160,000 & \$ 100,000 \\\hline \text { February } & \$ 160,000 & \$ 200,000 \\\hline \text { March } & \$ 160,000 & \$ 240,000 \\\hline \text { April } & \$ 140,000 & \$ 300,000 \\\hline \text { May } & \$ 140,000 & \$ 260,000 \\\hline \text { June } & \$ 120,000 & \$ 240,000 \\\hline\end{array}$$ Forty percent of purchases are paid for in cash at the time of purchase,and 30% are paid for in each of the next two months.Purchases for the previous November and December were $150,000 per month.Employee wages are 10% of sales for the month in which the sales occur.Marketing and administrative expenses are 20% of the following month's sales.(July sales are budgeted to be $220,000. ) Interest payments of $20,000 are paid quarterly in January and April.Kenyon's cash disbursements for the month of April would be: (CMA adapted)

• A) $140,000.
• B) $254,000.
• C) $200,000.
• D) $248,000.

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Definitions:

Daily Management

The continuous process of planning, monitoring, controlling, and adjusting day-to-day business operations and activities.

Taxed

Subjected to taxation by governmental authorities, relating to the imposition of financial charges on individuals or property.

Corporate Social Responsibility

Practices and policies undertaken by a company to have a positive influence on the world, beyond what is required by regulators or environmental protection groups.

Triple Bottom Line

A sustainability framework that evaluates a company's performance based on social, environmental, and financial criteria.