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At the start of a month, Spinoza has cash at the bank of $20,000, receivables of $42,000 and Payables of $65,000. The company will sell goods in the month for $120,000 that cost $80,000. 50% of amounts due from sales are collected in the month and 50% in the following month Purchases are paid for in the following month. Inventory is constant and other expenses, paid in the month are $90,000.
What will the company’s bank balance be at the end of the month?
Please do not simply type out full questions 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.
The approach to this question is all explained in my free lectures on budgeting. Have you watched the lectures?
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