Avengers Inc. began operations on January 1 of the current year with a $25,000 cash balance. 40%
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Question:
- Avenger’s Inc. began operations on January 1 of the current year with a $25,000 cash balance. 40% of sales are collected in the month of sale; 60% are collected in the month following the sale. Similarly, 45% of purchases are paid in the month of purchase, and 55% are paid in the month following purchase.
- The following data apply to January-
- Sales $75000,
- purchases $60000,
- and operating expenses- $9000
- and February – Sales $ 80000,
- purchases $65000,
- and operating expenses - $18000.
- If operating expenses are paid in the month incurred and include monthly depreciation charges of $5000.
- Determine the change in Avenger's cash balance during January and February month separately and the cash balance at the end of January and February.
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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