The financial manager of GCC Cereals is in the process of preparing a cash budget for...

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The financial manager of GCC Cereals is in the process of preparing a cash budget for the first quarter of 2021. The firm typically sells 1/3 of its monthly sales on cash terms and the rest on credit. An analys of the accounts receivables shows that on average 30% of the sales are collected in the next month and 60% in 60 days (two months) with the rest ending up as bad debts If the forecasted sales of January 2021 equals to $3,300,000 a. How much will be paid cash in January? b. How much w paid after one month? c. How much will be paid after two months? The financial manager of GCC Cereals is in the process of preparing a cash budget for the first quarter of 2021. The firm typically sells 1/3 of its monthly sales on cash terms and the rest on credit. An analys of the accounts receivables shows that on average 30% of the sales are collected in the next month and 60% in 60 days (two months) with the rest ending up as bad debts If the forecasted sales of January 2021 equals to $3,300,000 a. How much will be paid cash in January? b. How much w paid after one month? c. How much will be paid after two months?

Answer rating: 100% (QA)

ANSWER To calculate the cash inflows for each month based on the sales terms provided ... View the full answer