Question
A company is preparing its cash budget for the coming month. 75% sales are made on account. Given the following: Cash Accounts receivable Sales
A company is preparing its cash budget for the coming month. 75% sales are made on account. Given the following: Cash Accounts receivable Sales Cash disbursements Depreciation Beginning Balances $ 50,000 180,000 Ending accounts receivable balance Budgeted Amounts $800,000 780,000 25,000 210,000 What is the expected cash balance of the company at the end of the coming month?
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Step 1 Calculate the total cash inflows Cash sales 25 of sales are made in cash so 025 800000 200000 ...Get Instant Access to Expert-Tailored Solutions
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Cornerstones of Managerial Accounting
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
2nd Canadian edition
978-0176721237, 978-0176530884
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