11-A company had 30 million in total sales last year and expects 40 million in total sales this year. Ten percent of each year’s sales are on credit that will he paid the following year. The company anticipates the following expenses for this year: Depreciation of 5 million Labor materials taxes and other expenses of 51 million Assume the company begins this year with a zero cash balance. At the end of this year, the company will have a cash deficit of: A. 8 million B. 12 million C. 15 million D. 17 million
11-A company had 30 million in total sales last year and expects 40 million in total sales this year. Ten percent of each year’s sales are on credit that will he paid the following year. The company anticipates the following expenses for this year: Depreciation of 5 million Labor materials taxes and other expenses of 51 million Assume the company begins this year with a zero cash balance. At the end of this year, the company will have a cash deficit of: A. 8 million B. 12 million C. 15 million D. 17 million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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11-A company had 30 million in total sales last year and expects 40 million in total sales this year. Ten percent of each year’s sales are on credit that will he paid the following year. The company anticipates the following expenses for this year:
Labor materials taxes and other expenses of 51 million
Assume the company begins this year with a zero cash balance. At the end of this year, the company will have a cash deficit of:
A. 8 million
B. 12 million
C. 15 million
D. 17 million
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