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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.
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