Question
The following information applies to questions 52 and 53 The sales and raw materials purchases budgets of Lokim Limited are summarised as follows: Month January
The following information applies to questions 52 and 53
The sales and raw materials purchases budgets of Lokim Limited are summarised as follows:
Month | January | February | March |
Sales (units) | 4,100 | 4,300 | 4,500 |
Sales ($) | 49,200 | 51,600 | 54,000 |
Month | January | February | March |
Purchases (kg) | 2,700 | 2,900 | 3,100 |
Purchases ($) | 21,600 | 24,650 | 26,350 |
Lokim collects 60% of accounts receivable in the month of sale, 37% in the following month, and 3% are expected to go bad. Customers who pay within the first month of sale receive a 1% discount. Lokim settles 50% of its accounts payable in the month of purchase, and the remainder in the following month.
Question 52 (2 marks):
Calculate the total amount of cash expected to be collected in February from receivables.
Question 53 (2 marks):
Calculate the total amount of cash expected to paid in February.
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