Abc corp har the following bdgeted data for april 2013, cash balance beginning 3

Question

Abc corp har the following bdgeted data for april 2013, cash balance beginning 30,000, sales revenue april 150,000, sales revenue march 100,000, DM purchases april 80,000, DM purchases, March 60,000. Expenses: operating expenses 90,000, Payroll 70,000, income taxes 15,000. According to the company's policy, customers repay 60% of their debts in the month of sales, and the rest is paid off next month. All purchases of materials are made on credit with 70% paid in the month of purchase and the rest in the following month. All other expences are paid un the month when they are incured. Operating expences include 30,000 of depreciation. The company requires a minimum cash balance of 25,000 TAsk - compute the amount of cash avaliable for the company. at the end of April or its cash deficit at that moment

Explanation / Answer

Answer:

Particulars April Cash balance beginning 30000 Add: cash collections 60% in month of sales 90000 40% in next month 40000 Total cash available 160000 Less: Payments: Payment for materials 70% in month of Purchase 56000 30% in following month 18000 operating expenses 60000 Payroll 70000 Income taxes 15000 Total cash payment 219000 Cash available or deficit -59000 Borrowing 84000 Minimum cash balance 25000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.