7- Company managers arranged a bank loan of SAR 100,000 that will be added to the...
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7- Company managers arranged a bank loan of SAR 100,000 that will be added to the company's current account in May 2024. 8- The bank's balance at the beginning of April 2024 is SAR 100,000. 9- The cash sale rate is 20% and the term purchase is 25%. One company is concerned about its cash flows, so it asked the accountant to prepare a cash balance for the three months ended June 31, 2024. The data provided are as follows: month March .Feb .Jan 124,000 110,000 100,000 sales 123,000 92,000 80,000 procurement 22,000 salary Required: Preparation of the company's estimated cash balance for the second quarter of 2024. company XXXX Cash Balance Second Quarter 2024 1- Sales are expected to increase by 12% each month and purchases will increase by 8% every month from April. 2- The company's collection policy is based on the collection of 20% in the same month of sale and 40% in the following month of sale and the remainder two months after the date of sale. 3- The payment policy for purchases is based on payment of 25% in the same month and 30% in the following month and the remainder two months after the date of purchase. 4- The company expects salaries from February to increase by 15%. 5-Rent amounts to SAR 120,000 per year, paid in advance every three months in January, April, July and December each year. 6- A regular dividend of SAR 15,000 for 2022 will be paid in May 2024. 7- Company managers arranged a bank loan of SAR 100,000 that will be added to the company's current account in May 2024. 8- The bank's balance at the beginning of April 2024 is SAR 100,000. 9- The cash sale rate is 20% and the term purchase is 25%. One company is concerned about its cash flows, so it asked the accountant to prepare a cash balance for the three months ended June 31, 2024. The data provided are as follows: month March .Feb .Jan 124,000 110,000 100,000 sales 123,000 92,000 80,000 procurement 22,000 salary Required: Preparation of the company's estimated cash balance for the second quarter of 2024. company XXXX Cash Balance Second Quarter 2024 1- Sales are expected to increase by 12% each month and purchases will increase by 8% every month from April. 2- The company's collection policy is based on the collection of 20% in the same month of sale and 40% in the following month of sale and the remainder two months after the date of sale. 3- The payment policy for purchases is based on payment of 25% in the same month and 30% in the following month and the remainder two months after the date of purchase. 4- The company expects salaries from February to increase by 15%. 5-Rent amounts to SAR 120,000 per year, paid in advance every three months in January, April, July and December each year. 6- A regular dividend of SAR 15,000 for 2022 will be paid in May 2024.
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Answer To prepare the companys estimated cash balance for the second quarter of 2024 we need to consider the following factors sales purchases collect... View the full answer
Related Book For
Engineering Economic Analysis
ISBN: 9780195168075
9th Edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
Posted Date:
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