Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm predicts that 10% of its sales will never be collected, 40% will be collected in the month of the sale, and 50% will

A firm predicts that 10% of its sales will never be collected, 40% will be collected in the month of the sale, and 50% will be collected in the month after the sale. Purchases each month equal 75% of predicted sales for the next month. Purchases will be paid in the month after the purchase. The firm predicts the following.

January February March April

Sales ($) 250 320 280 260

The firm's beginning cash balance in March is $151. Cash disbursements in March, not including payments of accounts, is $129. Find the predicted cash balance at the end of March

  • $84

  • $35

  • $99

  • $54

  • $65

  • $80

.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jack Kapoor

6th Edition

0072350849, 9780072350845

More Books

Students also viewed these Finance questions

Question

How are language and thought related?

Answered: 1 week ago