Reference no: EM132631972

Question 1. A company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet. The balance of Accounts Payable can be taken from the ________.

Option 1: schedule of cash payments

Option 2: inventory, purchases, and cost of goods sold budget

Option 3: direct materials budget

Option 4: selling and administrative expenses budget

Question 2. Fulkron, Inc. provides the following data taken from its third quarter budget:

                                                          Jul                  Aug                           Sep
Cash collections                       $68,000         $34,000              $42,000
Cash payments:             
Purchases of direct materials      31,000               32,000             25,000
Operating expenses                     11,000           19,000               20,000
Capital expenditures                      0                  34,000                  7,000

The cash balance on June 30 is projected to be $12,000. Based on the above data, calculate the shortfall the company is projected to have at the end of August.

Option 1: $38,000

Option 2: $34,000

Option 3: $13,000

Option 4: $23,000