36) The second step in preparing the master budget is preparing the

A) sales budget.

B) budgeted income statement.

C) cash budget.

D) budgeted balance sheet.

37) The last step in preparing the financial budget is preparing the

A) budgeted income statement.

B) cash budget.

C) budgeted balance sheet.

D) sales budget.

38) Expenses that are NOT influenced by sales or other cost-driver activity include all of the following EXCEPT

A) delivery expenses.

B) rent expense.

C) insurance expense.

D) amortization expense.

39) A statement of planned cash receipts and disbursements is called a(n)

A) operating budget.

B) cash budget.

C) loan budget.

D) planning budget.

40) Important factors considered by sales forecasters include all of the following EXCEPT

A) past patterns of sales.

B) estimates made by the sales force.

C) changes in product mix.

D) the desired level of sales.

Miller Company has the following data:

Month

Budgeted Sales

January

$400,000

February

360,000

March

440,000

April

480,000

The gross profit rate is 40 percent, and the inventory at the end of December was $72,000. Desired inventory levels are 30 percent of next month’s sales.

41) The desired ending inventory for March is

A) $86,400.

B) $144,000.

C) $57,600.

D) undeterminable.

42) The desired ending inventory for April is

A) $ 86,400.

B) $ 57,600.

C) $144,000.

D) undeterminable.

43) The total purchases budgeted for February should be

A) $216,000.

B) $230,400.

C) $295,200.

D) $144,000.

44) The total purchases budgeted for March should be

A) $350,400.

B) $264,000.

C) $271,200.

D) $176,000.

Crouse Corporation has the following information:

Month

Budgeted Sales

May

$230,000

June

250,000

July

260,000

August

240,000

The cost of goods sold percentage is 65 percent, and the desired inventory level is 25 percent of next month’s sales.

45) The desired ending inventory for June is

A) $40,625.

B) $39,000.

C) $21,000.

D



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