Question
Xi sells fruit and vegetables from his market stall for cash. His budgeted sales for February, March and April are $45,000, $50,000 and $55,000 respectively.
Xi sells fruit and vegetables from his market stall for cash. His budgeted sales for February, March and April are $45,000, $50,000 and $55,000 respectively. His suppliers allow him one months credit in which to pay for the fruit and vegetables that he sells. His purchases cost is budgeted to be 80% of the sales value of his produce. Xi rents his market stall at a cost of $1,000 per month, payable on the first day of each month. Electricity costs for his market stall amount to $200 per month and he pays for these quarterly in March, June, September and December. Xi withdraws $2,000 a month from his business for his own personal expenses. What is Xis net cash inflow for March? 1. Prepare a cash flow statement 2. Calculate the cash inflow 3. Explain your calculations 4. Provide your analysis
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