The following estimates have been prepared for a retailer’s next budget period:

The gross profit margin on sales is budgeted at 55 per cent.

(a) The cash which the retailer expects to receive from customers during the budget period amounts to:
(i) $88000 (ii) $151900 (iii) $157900 :
(iv) $168100

(b) The value of purchases made by the retailer during the budget period is expected to be:
(i) $69900 (ii) $74100 (iii) $85900 (iv) $90100 (2 marks)
CIMA - Management Accounting Fundamentals

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($) Sales 160000 Opening debtors 27500 Closing debtors 19400 Opening stock 16600 Closing stock 18.700