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    yazeedbakri's Avatar
    yazeedbakri Posts: 6, Reputation: 1
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    #1

    Aug 13, 2010, 03:07 PM
    The following information has been provided by Zeppelin Corporation: · Budgeted sa
    The following information has been provided by Zeppelin Corporation:
    · Budgeted sales for January and February are $240,000 and $280,000, respectively.
    · Budgeted inventory purchases for January and February are $120,000 and $168,000, respectively.
    · 40% of purchases are paid for during the month of purchase and the remaining 60% are paid for
    during the subsequent month.
    · 10% of sales are collected during the month of sale and the remaining 90% are collected during
    the subsequent month.
    · Variable operating costs are budgeted at 25% of sales. Fixed operating costs are budgeted at
    $72,000 monthly and include depreciation expense of $14,000. Operating costs are paid for in the
    month that they are incurred.
    · The cash balance on February 1st was $20,000. Zeppelin's goal is to maintain at least a $20,000
    cash balance. Zeppelin can borrow cash in increments of $1,000.
    How much cash is budgeted to be paid in February for operating costs?
    A) $132,000 B) $118,000 C) $142,000 D) $128,000
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Aug 13, 2010, 07:39 PM

    Please see our guidelines for posting homework problems:
    https://www.askmehelpdesk.com/financ...-b-u-font.html

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