4- A Company estimates its sales for the next 5 months as following Feb March April...
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4- A" Company estimates its sales for the next "5" months as following Feb March April May Jun July 10000 12000 15000 16000 18000 20000 "A" expects to sale at OMR 5 per unit. Sales policy is to receive 30% of its sales in cash in the same month of sale and 50 % in the next month and the rest on the third month. Purchases cost is expected to be 70% of the next month sales and is paid in two equal installments in the two months following the purchases month. Other expenses: Wages 30% of each month sales Rent OMR 12,000 paid on April and OMR 10,000. on June Taxes OMR 3,000 to be paid in two parts in May and July. Opening balance for April is OMR 4000. Loan is expected to be received on May 14th OMR 30,000. Instructions: 1- Prepare the Cash Budget for the second quarter of the year 2024(April- Jun). 4- A" Company estimates its sales for the next "5" months as following Feb March April May Jun July 10000 12000 15000 16000 18000 20000 "A" expects to sale at OMR 5 per unit. Sales policy is to receive 30% of its sales in cash in the same month of sale and 50 % in the next month and the rest on the third month. Purchases cost is expected to be 70% of the next month sales and is paid in two equal installments in the two months following the purchases month. Other expenses: Wages 30% of each month sales Rent OMR 12,000 paid on April and OMR 10,000. on June Taxes OMR 3,000 to be paid in two parts in May and July. Opening balance for April is OMR 4000. Loan is expected to be received on May 14th OMR 30,000. Instructions: 1- Prepare the Cash Budget for the second quarter of the year 2024(April- Jun).
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Cash collection in second quarter Collected for April May June Total For the month of february OMR 1... View the full answer
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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