Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Depotissimo , has predicted the following sales for the first four months of 2015 January $ 6,000 March $ 15,000 February $ 11,000 April

Depotissimo " , has predicted the following sales for the first four months of 2015

January

$ 6,000

March

$ 15,000

February

$ 11,000

April

$ 17,000

Monthly purchases of raw materials accounts for 60 % of sales forecast for the next month.

Of total raw material purchases , payments are 60% in cash in the same month and 40% on credit. Of credit purchases 70% is paid in the following month and 30% is paid in two months.

Predicted costs for the company during this period are: Labor $ 1,000 per month , fixed overhead costs of $600 per month.

Two Interest payments on the debt of $650 each will be made in January and February.

Finally , at the end of the month of March sales staff receive a commission of 3 % of total sales for the first three months of the year and to be paid on March 30.

Calculate the final cash outflows in the month of February ?

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

EPA Should Improve Timeliness For Resolving Audits Under Appeal

Authors: U.S. Environmental Protection Agency

1st Edition

1500105783, 978-1500105785

More Books

Students also viewed these Accounting questions

Question

6. How do histories influence the process of identity formation?

Answered: 1 week ago