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Please help me with that question…
A monthly cash budget has beeb drawn up as follows:
March $ April $
ReceiptsCredit sales 20,000 22,000
Cash Sales 10,000 9,000Payments
Suppliers. 13,000. 8400
Wages 4,600 4600
Overheads 3,000 3,500The opening cash balance for March was $1,000.
What is the budgeted closing cash balance for April?
Cash receipts for March: 20000 + 10000 + opening balance 1000= 31000
Minus payments: 13000+4600+3000=20600
So balance for March = 10400 (31000-20600)Opening balance for April= 10400 + 22000+9000= 41400
Minus payments:
8400 +4600 +3500= 16500So balance for April = 24900 (41400-16500)
Hy ! Kindly help me in this question
A company has two-month receivables cycle. It receives in cash 45% of the total gross sales value in the month of invoicing. Irrecoverable debts are 20% of total gross sales vale and there is a 10% discount for settling accounts within 30days.
What proportion of the first month’s sales will be received as cash in the second month?
Answer is : 30%
Explain me how?Say sales are 1,000. 45% (450) received in first month, but this is after the 10% discount. Before the discount this would be receipts of 45/0.0 = 50% of gross sales [check 1000 x 50% x 90% = 450, or 45%].
20% is never received, leaving 100% – 50% – 20% = 30% to be received in the second month.
We don’t produce any lectures specifically for MA2. However, in Chapter 11 of the notes there is an example with answer at the back to work through.
If you want a lecture then try looking at our ACCA MA notes and lectures, chapter 16 (part 4 of the lectures).
https://opentuition.com/acca/ma/acca-management-accounting-ma-lectures/
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