The following data have been taken from the budget reports of Kenyon Company, a merchandising company. Purchases SalesJanuary$160,000 $100,000 February$160,000 $200,000 March$160,000 $240,000 April$140,000 $300,000 May$140,000 $260,000 June$120,000 $240,000 Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchases for the previous November and December were $150,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Marketing and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $220,000.) Interest payments of $20,000 are paid quarterly in January and April. Kenyon's cash disbursements for the month of April
would be: (CMA adapted)
A. $200,000.
B. $254,000.
C. $248,000.
D. $140,000.
Answer: B
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a. $50,000 b. $45,000 c. $20,000 d. $40,000
A tenancy with no fixed duration is a
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The owner of an amusement park has decided to open a second entry booth and hire another employee to service customers entering the park. Customers arrive at the rate of 20 per hour and will wait in a single line until one of the two employees is available to provide service. The average service time of both employees is 2 minutes to provide service. The arrival rate follows Poisson distribution, and the service time follows a negative exponential distribution. Determine the average number of customers waiting in line.
a. 0.75 b. 0.89 c. 0.08 d. 0.98
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