7- Company managers arranged a bank loan of SAR 100,000 that will be added to the...

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7- Company managers arranged a bank loan of SAR 100,000 that will be added to the company's current account in May 2024. 8- The bank's balance at the beginning of April 2024 is SAR 100,000. 9- The cash sale rate is 20% and the term purchase is 25%. One company is concerned about its cash flows, so it asked the accountant to prepare a cash balance for the three months ended June 31, 2024. The data provided are as follows: month March .Feb .Jan 124,000 110,000 100,000 sales 123,000 92,000 80,000 procurement 22,000 salary Required: Preparation of the company's estimated cash balance for the second quarter of 2024. company XXXX Cash Balance Second Quarter 2024 1- Sales are expected to increase by 12% each month and purchases will increase by 8% every month from April. 2- The company's collection policy is based on the collection of 20% in the same month of sale and 40% in the following month of sale and the remainder two months after the date of sale. 3- The payment policy for purchases is based on payment of 25% in the same month and 30% in the following month and the remainder two months after the date of purchase. 4- The company expects salaries from February to increase by 15%. 5-Rent amounts to SAR 120,000 per year, paid in advance every three months in January, April, July and December each year. 6- A regular dividend of SAR 15,000 for 2022 will be paid in May 2024. 7- Company managers arranged a bank loan of SAR 100,000 that will be added to the company's current account in May 2024. 8- The bank's balance at the beginning of April 2024 is SAR 100,000. 9- The cash sale rate is 20% and the term purchase is 25%. One company is concerned about its cash flows, so it asked the accountant to prepare a cash balance for the three months ended June 31, 2024. The data provided are as follows: month March .Feb .Jan 124,000 110,000 100,000 sales 123,000 92,000 80,000 procurement 22,000 salary Required: Preparation of the company's estimated cash balance for the second quarter of 2024. company XXXX Cash Balance Second Quarter 2024 1- Sales are expected to increase by 12% each month and purchases will increase by 8% every month from April. 2- The company's collection policy is based on the collection of 20% in the same month of sale and 40% in the following month of sale and the remainder two months after the date of sale. 3- The payment policy for purchases is based on payment of 25% in the same month and 30% in the following month and the remainder two months after the date of purchase. 4- The company expects salaries from February to increase by 15%. 5-Rent amounts to SAR 120,000 per year, paid in advance every three months in January, April, July and December each year. 6- A regular dividend of SAR 15,000 for 2022 will be paid in May 2024.

Answer rating: 100% (QA)

Answer To prepare the companys estimated cash balance for the second quarter of 2024 we need to consider the following factors sales purchases collect... View the full answer