rojected following for Ja ary 2019 to August 2019. The sales of Green PLC are 30% in cash and the remai der is on a credit for 1 month, It also expects cash receipts from its subsidiaries worth £40,000 in March, £26,000 in April, and £27,000 in June. The firm pays 20% in cash for all its purchases. The remaining 40% is paid i the following month and the last 40% is paid 2 months later. Month Sales Purchases January February March 600,000 400,000 s00,000 600,000 500,000 700,000 s00,000 350,000 450,000 April May 475,000 300,000 450,000 June July August 750,000 s00,000 300,000 350,000 Wages and salaries amount to 25% of the sales in the preceding month. They so need to pay rent of £15,000 every month. The payment for a new machinery ill be due in March for £45,000 and will be paid in cash. They have to pay interin xof £45,000 in May. The firm also expects to pay dividend of £26,000 in March and receive a cash bsidy of £37,000 from government in June. Assuming that the firm has a cash balance of £32,000 at the beginning of January
rojected following for Ja ary 2019 to August 2019. The sales of Green PLC are 30% in cash and the remai der is on a credit for 1 month, It also expects cash receipts from its subsidiaries worth £40,000 in March, £26,000 in April, and £27,000 in June. The firm pays 20% in cash for all its purchases. The remaining 40% is paid i the following month and the last 40% is paid 2 months later. Month Sales Purchases January February March 600,000 400,000 s00,000 600,000 500,000 700,000 s00,000 350,000 450,000 April May 475,000 300,000 450,000 June July August 750,000 s00,000 300,000 350,000 Wages and salaries amount to 25% of the sales in the preceding month. They so need to pay rent of £15,000 every month. The payment for a new machinery ill be due in March for £45,000 and will be paid in cash. They have to pay interin xof £45,000 in May. The firm also expects to pay dividend of £26,000 in March and receive a cash bsidy of £37,000 from government in June. Assuming that the firm has a cash balance of £32,000 at the beginning of January
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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