Calculate Cash Budget ( Calculation of Account Receivable and Account Payable amount for the months of...

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Calculate Cash Budget ( Calculation of Account Receivable and Account Payable amount for the months of January, February, March & April, 2022 November December January February March April Credit Sales 150,000 160,000 180,000 200,000 225,000 250,000 130,000 150,000 170,000 180,000 200,000 225,000 Credit Purchase Accounts receivable regularly settle their accounts as follows: * 50% pay in the month following sale (these accounts take advantage of a 10% discount) * 30% pay in the 2nd month * 10% pay in the 3rd month * The balance is written off as bad. Accounts payable are settled in the month following purchase. From 80% of suppliers, a discount of 5% is received. For the remaining 20%, in the second month of credit purchase. Calculate Cash Budget ( Calculation of Account Receivable and Account Payable amount for the months of January, February, March & April, 2022 November December January February March April Credit Sales 150,000 160,000 180,000 200,000 225,000 250,000 130,000 150,000 170,000 180,000 200,000 225,000 Credit Purchase Accounts receivable regularly settle their accounts as follows: * 50% pay in the month following sale (these accounts take advantage of a 10% discount) * 30% pay in the 2nd month * 10% pay in the 3rd month * The balance is written off as bad. Accounts payable are settled in the month following purchase. From 80% of suppliers, a discount of 5% is received. For the remaining 20%, in the second month of credit purchase.

Answer rating: 100% (QA)

Step 1Basic Information Cash Budget is the summary of Cash Receipts and Cash Payments for the period ... View the full answer