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NEW QUESTION 33
Scully Tools Company is currently completing its master budget for the coming year Immediately before the master budget is approved, it is determined that December sales should be revised upward by S120.000 .
Scully purchases merchandise on a just-in-time basis, and remits cash immediately through electronic transfer All sales are on account. 20% of the sales are collected in the month of sale, and 80% in the month following the sale. Scully's gross profit percentage is 30%. What effect will this budget revision have on Scully's pro forma statement of cash flows?

• A. Cash will increase by $24,000
• B. Cash will decrease by $84,000
• C. Cash will increase by $36,000
• D. Cash will decrease by $60,000

Answer: B

NEW QUESTION 34
in order for the IT manager in cnarge of a company's disaster recovery plan to have complete planning documentation, he should ensure that the documentation includes all of the following except

• A. program and operating system documentation
• B. the phone numbers of key employees
• C. the results of the latest disaster recovery test run
• D. vendors who win set up the hot site

Answer: D

NEW QUESTION 35
The manager in charge of the disaster recovery plan for a company has ensured that there is off-site storage of key data programs, operating systems and documentation. Which one of the following is the best next step to be prepared for a disaster?

• A. She should create a planning document including a list of critical applications.
• B. She should enter into reciprocal agreements with alternative ''hot'' sites.
• C. She should make sure that everyone Knows the location of offsite data storage.
• D. She should ensure that the "cold" sites are fully equipped and ready.

Answer: C

NEW QUESTION 36
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