Question
The following information was available from Metropolitan Corporation's books: Purchases Sales (Rs.) (Rs.) January 2006 42,000 72,000 February 2006 48,000 66,000 March 2006 36,000 60,000
The following information was available from Metropolitan Corporation's books:
Purchases Sales
(Rs.) (Rs.)
January 2006 42,000 72,000
February 2006 48,000 66,000
March 2006 36,000 60,000
April 2006 54,000 78,000
Collection from customers are normally 70% in the month of sales, 20% in the month following sales and 9% in the second month following sales. The balance is expected to be uncollectible. Metropolitan Corporation takes full advantage of 2% discount allowed on purchases while sales for May are forecasted at Rs. 66,000. Cash disbursement for to be Rs. 14,400 for the month of May. Metropolitan's cash balance at May 1 was Rs. 20,000.
a) 1st installment Cash Received ______________
b) 2nd installment Cash Received ______________
c) 3rd installment Cash Received ______________
d) Total Cash inflow _____________
e) Total Cash outflow _____________
i) Closing Cash _______________
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