Question
The XYZ company specializes in homemade chocolates and receives all income from sales The sales revenue estimates (in million S) for the company arc at
The XYZ company specializes in homemade chocolates and receives all income from sales The sales revenue estimates (in million S) for the company arc at follows: Q1 = 500. Q2 = 550. Q3 = 600. QA = 650. Q1 of next year = 650. The average collection period for accounts receivables is 30 days. Beginning receivableĀ« (Q1 beginning) is $250 million. The purchases arc 50% of next quarter sales Beginning payables (Ql beginning) is SI50 million. The accounts payable period is 30 days. Wages and oilier expenses every quarter arc 30% of the sales revenue of that quarter There are no other expenses The beginning cash balance (Q1 beginning) is $30 million. How much will be the cash balance at the end of Quarter 3?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
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