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A company has a current cash balance of $17,000, trade receivables of $25,000 and trade payables of
$30,000. The company can sell goods costing $50,000 for $80,000 next month. One half of all sales are
collected in the month of sale and the remainder in the following month. All purchases are made on credit
and paid during the following month. Inventory levels will remain constant during the month. General cash
expenses will be $70,000 during the month of sale
What is the cash balance at the end of the month?Please do not simply type out a full question and expect to be provided with a full answer. You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
I assume that you have watched my free lecture on cash budgets? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well 🙂
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