Acme Company’s budgeted monthly sales are as follows: April $230,000, May $220,000, and June $210,000. Sales are 60% cash and 40% on account. Acme collects all its receivables in the month following the sale. Cost of goods sold is budgeted at 70% of sales revenue. Acme maintains an ending inventory balance equal to $60,000, plus 50% of the next month’s cost of goods sold. All inventory purchases are paid 20% in the month of purchase and 80% in the following month. What is the budgeted accounts payable balance on May 31?

Acme Company is preparing its budget for the upcoming year. Cash sales are budgeted at $172,000 for May and $190,000 for June, and sales on account are budgeted at $360,000 for May and $370,000 for June. For its credit sales, Acme collects 20% in the month of the sale, 60% in the month following the sale, and 20% in the second month following the sale. The accounts receivable balance on May 1 is $275,000, of which $205,000 represents uncollected April sales and $70,000 represents uncollected March sales. What are the total budgeted cash collections during the month of May?

Acme Company has a minimum required rate of return of 8.5%. Acme has three divisions, Divisions R, S, and T. During the current year, Division T reports a return on investment of 16.0% and residual income of $33,000. What is Division T’s operating income? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

Acme Company, a retailer, is preparing its merchandise inventory purchases budget for the upcoming year. For budgeting purposes, Acme’s policy is to maintain an inventory balance (safety stock) equal to a percentage of the next month’s cost of goods sold. Which of the following statements are true?

Acme Company’s variable expense ratio is 75% and the company’s break-even point in sales revenue is $675,000. If Acme reports a net operating loss of $12,000, what are its actual sales revenues? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

Acme Company’s variable expense ratio is 75% and the company’s break-even point in sales revenue is $675,000. If Acme reports a net operating loss of $32,000, what are its actual sales revenues? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

Acme Company has a minimum required rate of return of 8.5%. Acme has three divisions, Divisions R, S, and T. During the current year, Division T reports a return on investment of 16.0% and residual income of $34,500. What is Division T’s operating income? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

Acme Company, a retailer, is preparing its selling and administrative expenses budget for the month of June. Sales are budgeted at $500,000 for May, $450,000 for June, and $550,000 for July. Selling expenses are budgeted at $9,000 plus a percentage of monthly sales revenue. The selling expenses budget for the month of May is $24,000. Budgeted fixed administrative expenses include rent of $17,000 and depreciation expense of $7,100. Variable administrative expenses are budgeted at 4% of monthly sales revenue. Capital expenditures related to fixed assets used in selling and administrative activities are budgeted at $5,750 for the month of June. What are the budgeted cash payments for selling and administrative operating expenses for the month of June?

Acme Company produces and sells a single product. Acme’s budget for the upcoming year assumes sales of 3,600 units, a selling price of $55.00 per unit, variable costs of $22.00 per unit, and fixed costs of $18.25 per unit. What is the margin of safety in terms of sales revenue?

You receive a referral for an 8-month-old, in the chart you read there was an incident of shaken baby syndrome. What is the most likely diagnosis you will be treating?