# quiz

Pages: 4 (294 words) Published: May 10, 2014
﻿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:

June
\$000s
July
\$000s
August
\$000s
September
\$000s
October
\$000s
November
\$000s
Cash sales (cash   collections)
250
200
250
350
200
80
Cash purchases
180

160=
360
130
40
50
60
Wages and salaries
40
40
50
40
40
45
Rent

80

Rates

60
Other expenses
25
25=65
25
25
25
25
Refurbishing shops

80

Total cash   disbursements
245
225
285
185
115
190

Refer to the table above.  The projected cash balance for the end of July is: Select one:
a. \$(25,000).
b. \$(20,000)
c. \$(100,000)
d. \$25,000.
e. \$(120,000).

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:

January
February
March
April
Budgeted sales revenue
\$200,000
\$300,000
\$350,000
\$250,000

Cash collections in April are budgeted to be:

Sydney Ltd has provided you with the following budget information for June:...

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