RoboTech Enterprises has provided the following budget information for the upcoming quarter: Expected Sales: 400,000 Expected Purchases:
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Question:
RoboTech Enterprises has provided the following budget information for the upcoming quarter:
- Expected Sales: £400,000
- Expected Purchases: £220,000
- Expected Operating Expenses: £60,000
- Expected Administrative Expenses: £40,000
- Beginning Cash Balance: £25,000
Requirements:
- Prepare a cash budget for the upcoming quarter, assuming all sales are on credit and 80% of sales will be collected in the same quarter.
- Determine the expected ending cash balance for the quarter.
- Analyze the cash flow situation and suggest ways to improve cash management if necessary.
Posted Date: