1.C.) Rose Turkish Delight Company is a new company and will start to operations in January, 2022. • Its beginning cash balance is 5,000 TL. • It plans to sell 1000 boxes at 20 TL each month. • 90% of the sales will be in cash, 10% of sales will be collected in the following month. • In January, short term investment will be sold at 10,000 TL in cash. • Production costs will be 20,000 TL and selling and administrative expenses will be 10,000 TL in January and all will be paid in cash • Production costs will be 20,000 TL and selling and administrative expenses will be 5,000 TL in February and all| will be paid in cash • Minimum cash balance is 5,000 TL. Prepare a cash budget for January and February 2022.
1.C.) Rose Turkish Delight Company is a new company and will start to operations in January, 2022. • Its beginning cash balance is 5,000 TL. • It plans to sell 1000 boxes at 20 TL each month. • 90% of the sales will be in cash, 10% of sales will be collected in the following month. • In January, short term investment will be sold at 10,000 TL in cash. • Production costs will be 20,000 TL and selling and administrative expenses will be 10,000 TL in January and all will be paid in cash • Production costs will be 20,000 TL and selling and administrative expenses will be 5,000 TL in February and all| will be paid in cash • Minimum cash balance is 5,000 TL. Prepare a cash budget for January and February 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![1.C.) Rose Turkish Delight Company is a new company and will start to operations in January, 2022.
• Its beginning cash balance is 5,000 TL.
• It plans to sell 1000 boxes at 20 TL each month.
• 90% of the sales will be in cash, 10% of sales will be collected in the following month.
• In January, short term investment will be sold at 10,000 TL in cash.
• Production costs will be 20,000 TL and selling and administrative expenses will be 10,000 TL in January and all will
be paid in cash
• Production costs will be 20,000 TL and selling and administrative expenses will be 5,000 TL in February and all|
will be paid in cash
• Minimum cash balance is 5,000 TL.
Prepare a cash budget for January and February 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb93ad746-1aad-4e3f-a5e5-5916cc76b843%2F037d1431-d243-48ae-8bba-6d46e11b7348%2F68reysk_processed.png&w=3840&q=75)
Transcribed Image Text:1.C.) Rose Turkish Delight Company is a new company and will start to operations in January, 2022.
• Its beginning cash balance is 5,000 TL.
• It plans to sell 1000 boxes at 20 TL each month.
• 90% of the sales will be in cash, 10% of sales will be collected in the following month.
• In January, short term investment will be sold at 10,000 TL in cash.
• Production costs will be 20,000 TL and selling and administrative expenses will be 10,000 TL in January and all will
be paid in cash
• Production costs will be 20,000 TL and selling and administrative expenses will be 5,000 TL in February and all|
will be paid in cash
• Minimum cash balance is 5,000 TL.
Prepare a cash budget for January and February 2022.
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