The Following Data Have Been Taken from the Budget Reports

question 42

Multiple Choice

The following data have been taken from the budget reports of Brandon Company, a merchandising company. $\begin{array}{lrr}&\text { Purchases }&\text { Sales }\\ \text { January } &£ 160,000 &£ 100,000\\ \text { February} &160,000&200,000\\ \text { March } &160,000&240,000\\ \text { April } &140,000 & 300,000\\ \text { May } &140,000&260,000\\ \text { June } &120,000&240,000\\\end{array}$

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. Operating 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. Brandon's cash disbursements for the month of April would be

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

Grasp the concept and importance of agenda setting and networking for effective management.

Appreciate the necessity of continuous learning, initiative, and discipline for career advancement.

Recognize the importance of intellectual and social capital in creating organizational value.

Understand the characteristics of knowledge workers and their value to organizations.

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Definitions:

Dividend Income

Income received from owning shares of stock in a company, usually paid out from the company's profits to shareholders at regular intervals.

Shares

Portions of ownership in a corporation, representing a claim on part of its assets and earnings.

Dividend Yield

A financial ratio indicating how much a company pays out in dividends each year relative to its stock price, used by investors to gauge return on investment.

Dividend Income

Income received from owning shares of a company, distributed from the company's earnings.