QUESTION 1

Q#1 HASF and company is a retails hardware store information about the store operations follows November 2017 sales 400,000 Sales are budgeted 440,000 for December and 4 00,000 for January 2018 Credit sales typically are 80% of total sales Collection are expected to 55% in the month of sales and 45% in the month following sales Gross profit margin 25% A total of 80% of the merchandise for resale its purchase in the month prior to the month of sales and 20% is purchase in the month of sales payment for merchandise is made in the month following the purchase Other month expenses paid in cash amount 45,200 Annual depreciation is 432,000 The company balance sheet as of November 30 2017 is as follow HASF Hardware inc Balance sheet As on November 30 2018 Cash 44,000 A/c receivable 152,000 Inventory 280,000 Property plant and equipment 1,724,000 Total assets 2,200,000 a/c payable 324,000 common stock 1,590,000 Retained earning 286,000 Total liabilities and owner equity 2,200,000 Required Find out the following ( 01 Marks each )

Amount of credit sales in Dec Amount of cash sales in Dec Amount of cash will be received from Nov sales Amount of cash will be received from Dec credit sales Total amount of cash will be received in Dec Value of Purchase in the month of Dec Cash disburstment for inventory purchase in Dec Total cash disburstment in Dec Beginning cash balance in Dec total cash will be available before disbursment Excess or Deficiency balance at Dec 31 Value of cost of goods sold in Dec 31 Gross profit in Dec 31 net profit in Dec 31 10 points

QUESTION 2