Question
The sales and raw materials purchases budgets of Fresax Limited are summarised as follows: Month May June July Sales (units) 180 190 210 Sales ($)
The sales and raw materials purchases budgets of Fresax Limited are summarised as follows:
Month May June July
Sales (units) 180 190 210
Sales ($) 2,160 2,280 2,520
Month May June July
Purchases (kg) 110 113 119
Purchases ($) 770 791 833
Fresax collects 61% of accounts receivable in the month of sale, 35% in the following month, and 4% are expected to go bad. Customers who pay within the first month of sale receive a 3% discount. Fresax settles 61% of its accounts payable in the month of purchase, and the remainder in the following month.
Calculate the expected cash collections from receivables for June.
Calculate the expected cash disbursements for June.
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