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Budgeted sales revenue for Generic Motors in the coming five months is as follows: Month Budgeted Sales August $165,000 September $115,000 October $200,000 November $105,000
Budgeted sales revenue for Generic Motors in the coming five months is as follows: Month Budgeted Sales August $165,000 September $115,000 October $200,000 November $105,000 December $185,000 GM estimates that they will collect 40% of sales revenue in the month of sale, 40% in the following month, 15% two months after the sale, and the remaining 5% three months after the sale. Question 1 - What is the budgeted cash inflow for November? It is $[A]. Question 2 - What is the budgeted accounts receivable by the end of December? It is $[B]. Question 3 - Is it possible for a company to be profitable but also cash-poor? Enter Y for yes, or N for No. [C] Budgeted sales revenue for Generic Motors in the coming five months is as follows: Month Budgeted Sales August $165,000 September $115,000 October $200,000 November $105,000 December $185,000 GM estimates that they will collect 40% of sales revenue in the month of sale, 40% in the following month, 15% two months after the sale, and the remaining 5% three months after the sale. Question 1 - What is the budgeted cash inflow for November? It is $[A]. Question 2 - What is the budgeted accounts receivable by the end of December? It is $[B]. Question 3 - Is it possible for a company to be profitable but also cash-poor? Enter Y for yes, or N for No. [C]
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