Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to answer question 5. Note: Each part of the question is independent, meaning that you do not need information from the

image text in transcribed

Use the following information to answer question 5. Note: Each part of the question is independent, meaning that you do not need information from the previous part(s) to answer them. You do not need to create a full purchase, disbursement, and cash budget to answer the question (although you can if it's easier for you to do so). Sales Wages Rent Depreciation Other August $15,000 $1,500 $450 $130 $140 September $26,000 $1,700 $450 $130 $250 October $23,000 $1,700 $450 $130 November December January February $39,000 $46,000 $21,000 $17,000 $1,900 $1,900 $1,600 - $450 $450 $450 $450 $130 $130 $130 $130 $380 $450 $350 $160 $220 General Data 1. Sales are 20% cash, 80% on credit 2. Of the credit sales, 70% are collected in the month following the month of sale, and 30% in the second month following the sale. 3. Gross profit margin on sales averages 25%, meaning that COGS is 75% of sales. 4. All inventory purchases are paid during the month in which they are made. 5. The only purchases the company makes is for inventory. They purchase enough inventory each month to cover the following month's sales at cost. 6. A $12,000 dividend payment will be made in January Part i: What is the expected cash inflow for November? (total receipts) [ Select] Part ii: What is the total expected cash outflow for inventory in October? [ Select] Part iji: What is the expected total cash outflow for January? [Select ]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

4. Classify inventory systems

Answered: 1 week ago

Question

1. What is Ebola ? 2.Heart is a muscle? 3. Artificial lighting?

Answered: 1 week ago