The ASD Company, which produces a single product that is sold for 10 per unit, is currently
Question:
The ASD Company, which produces a single product that is sold for 10 per unit, is currently producing the budget for the period July - September of year N. The following are the budgeted sales these months:
Month | Sales of ASD Company (in ) |
July | 400 000 |
August | 300 000 |
September | 500 000 |
50% of sales are expected to be made on cash and 50% on credit. Of these credit sales, 30% are expected to be paid during the month 50% are expected to be paid at the end of the following month and 20% are expected to be paid at the end of the second month following the sale. At the beginning of July, the receivables were 180 000.
Answer the following with explanations-
The cash expected to be collected in September of year N is:
- 440 000
- 620 000
- 365 000
- 250 000
- None of the above
The value of Sales in the budgeted P&L of the 3rd Quarter:
- 1 000 000
- 995 000
- 1 175 000
- 1 200 000
- None of the above
The value of Receivables from Clients in the budgeted Balance Sheet at 30/September of year N is:
- 155 000
- 215 000
- 30 000
- 205 000
- None of the above
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill