hi john, how r u? please guide me about the following:
1# A cash budget prepared for next 3 months shows that there will be surplus money available. what can we do with that money?
a. pay supplier early to receive cash discount
b. buy new plant
c. invest in treasury bills,
2# Gross sales $40,000 per month, of which 10% are for cash, the rest on credit. receivables experience shows the following:
Within one month 40%
within two months 50%
settlement discounts ( for payment within one month) 4%
Total expected cash receipts in any month will be:
a. 35824
b. 36400
( In question 2 point of confusion is discounts) ( question 1 could not understand)
Plz guide me and also guide me about discounts specially.
waiting for your usual cooperation with students
FIA Forums
cash budget
wyy is preparing budgets for the next quarter.The following information has been prepared so far:
sales value: june $12500
july $13600
august $17000
september$3150
direct wages: $13000per months
direct material purchases: june $ 3450
july $ 3780
august $ 2890
september $3150
other infor:
-wxy sells 10% of its goods for cash.the remaining of customers receive one month credit
-payments to material suppliers are made in the following month of puchase
-wages are paid as they are incurred
-wxy takes one month credit on all overheads
-production overheads are $3200 per month
-selling,ditribution and administration overheads amount to 1890 per month
-included in the amounts for overhead given above are depreciation charges of $300 and $190 respectively
-wxy expects to purchase a delivery vehicles in august for a cash payments of $9870
-the #cash balance at the end of junr is forecast to be $1235
prepare a cash budget >>>>at the end of #june is a forecast to be @$1235
This is so fascinating that so much money is involved.
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