CompuData owns a chain of five shops selling computer goods. In the past the company maintained a healthy cash balance. However, this has fallen in recent months, and at the end of May 2014 it had an overdraft of $100,000. In view of this, CompuData’s managing director has asked you to prepare a cash forecast for the next six months. You have collected the following information:
Cash sales (cash collections)
Wages and salaries
Total cash disbursements
Refer to the table above. The projected cash balance for the end of July is: Select one:
Mildura Company is planning to purchase non-current assets at a cost of $200,000. The planned delivery date is 1st September 2014. A deposit of $10,000 is to be paid on 1St July 2014. The amount that will appear in the cash budget for July 2014 is: Select one:
a. $200,000 outflow.
b. $190,000 outflow.
c. $10,000 outflow.
d. $10,000 inflow.
e. $190,000 inflow.
I think the answer is e. $190,000 inflow. Is that correct? 10,000 outflow Wodonga Company collects 20 per cent of a month’s sales revenue in the month of sale, 70 per cent in the month following sale, and 6 per cent in the second month following sale. The remainder is uncollectible. The budgeted sales revenue for the next four months is:
Budgeted sales revenue
Cash collections in April are budgeted to be:
Sydney Ltd has provided you with the following budget information for June:...
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