Question
TOPIC 4 (2 UNITS) The company xxx prepares its budgets for next year, 2XX1. Data related to relevant forecasts for the first quarter are given
TOPIC 4 (2 UNITS) The company "xxx" prepares its budgets for next year, 2XX1. Data related to relevant forecasts for the first quarter are given in the table below:
Product sales in cash | Product sales on credit | Product purchases in cash | Supplier payments | |
January | 150.000,00 | 650.000,00 | 580.000,00 | 360.000,00 |
Frebruary | 170.000,00 | 680.000,00 | 542.000,00 | 337.000,00 |
March | 180.000,00 | 630.000,00 | 500.000,00 | 350.000,00 |
In addition, the following information is available: Sales on credit are collected at 60% in the following month of sales and 35% in the month after that. The remaining 5% is not expected to be collected (doubtful receivables). Sales on credit of the previous December are 780,000 and of the previous November 810,000 The cash balance at the beginning of January is 400,000
REQUESTED Prepare the cash budget for the month of January, February and March and in total for the quarter.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started