Reference no: EM132560635

Question 1: The budgeted sales for the next four quarters are £192,000, £288,000, £288,000 and £336,000 respectively. It is estimated that sales will be paid for as follows:-75% of the total will be paid in the quarter that the sales were made. Of the balance 50% will be paid in the quarter after the sale was made. The remaining 50% will be paid in the quarter after this. The amount of cash received in the third quarter will be:

Option 1: £276,000

Option 2: £240,000

Option 3: £324,000

Option 4: £144,000

Question 2: When a production budget is being prepared the quantity that needs to be produced is calculated by the following equation:

Option 1: Opening stock plus quantity sold plus closing stock

Option 2: Opening stock less quantity sold plus closing stock

Option 3: Opening stock less quantity sold

Option 4: Quantity sold plus closing stock less opening stock