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QUESTION THREE FG Ltd is preparing its cash budget for January February, and March 2020. Budgeted data are as follows Now December Sales 750 00

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QUESTION THREE FG Ltd is preparing its cash budget for January February, and March 2020. Budgeted data are as follows Now December Sales 750 00 10 Production 00 De la 155.000 Vanable the FOH/20000 2000 2000 20000 20000 med (excluding elation The selling price per unit is GH 200. The purchase price per kg of raw material is GH 25. Each unit of finished product requires 2kg of raw materials which are purchased on credit in the month before they are used in production Suppliers of raw materials are paid one month after purchase All sales are on credit. 80% of customers pay one month after sale and the remainder pays two months after sale The directeur con, viale overhead und find a reped in the which they are incurred Machinery costi OH100,000 will be delivered in February and paid for in March Depreciation including that on the new machinery areas fotos Machinery and out GH500 Motor vehicle GRO The opening cul balance at 1 Smary is estimated to be Gheis.000 Required Prepare a chib bolgt for chefe three months. Fichwary and Man State and explain POUR (4) dicluloices of cash balet A company's sales revenue for the year just ended was GH28 million. The company earned a gross margin of 40% on sales. All sales and purchases were on credit. The following balances have been extracted from the year- end accounts: Inventory GH4 million Accounts receivable GHc6 million Accounts payable GH3 million Required: Calculate, to the nearest whole number, the company's cash operating cycle based on the year ended figures (4 marks) QUESTION THREE FG Ltd is preparing its cash budget for January February, and March 2020. Budgeted data are as follows Now December Sales 750 00 10 Production 00 De la 155.000 Vanable the FOH/20000 2000 2000 20000 20000 med (excluding elation The selling price per unit is GH 200. The purchase price per kg of raw material is GH 25. Each unit of finished product requires 2kg of raw materials which are purchased on credit in the month before they are used in production Suppliers of raw materials are paid one month after purchase All sales are on credit. 80% of customers pay one month after sale and the remainder pays two months after sale The directeur con, viale overhead und find a reped in the which they are incurred Machinery costi OH100,000 will be delivered in February and paid for in March Depreciation including that on the new machinery areas fotos Machinery and out GH500 Motor vehicle GRO The opening cul balance at 1 Smary is estimated to be Gheis.000 Required Prepare a chib bolgt for chefe three months. Fichwary and Man State and explain POUR (4) dicluloices of cash balet A company's sales revenue for the year just ended was GH28 million. The company earned a gross margin of 40% on sales. All sales and purchases were on credit. The following balances have been extracted from the year- end accounts: Inventory GH4 million Accounts receivable GHc6 million Accounts payable GH3 million Required: Calculate, to the nearest whole number, the company's cash operating cycle based on the year ended figures (4 marks)

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