7- Company managers arranged a bank loan of SAR 100,000 that will be added to the company's current account in May 2024. 8- The bank's balance at the beginning of April 2024 is SAR 100,000. 9- The cash sale rate is 20% and the term purchase is 25%. Required: Preparation of the company's estimated cash balance for the second quarter of 2024. company XXXX Cash Balance Second Quarter 2024 One company is concerned about its cash flows, so it asked the accountant to prepare a cash balance for the three months ended June 31, 2024. The data provided are as follows: March .Feb .Jan 124,000 110,000 100,000 123,000 92,000 month sales 80,000 procurement 22,000 salary 1- Sales are expected to increase by 12% each month and purchases will increase by 8% every month from April. 2- The company's collection policy is based on the collection of 20% in the same month of sale and 40% in the following month of sale and the remainder two months after the date of sale. 3- The payment policy for purchases is based on payment of 25% in the same month and 30% in the following month and the remainder two months after the date of purchase. 4- The company expects salaries from February to increase by 15%. 5- Rent amounts to SAR 120,000 per year, paid in advance every three months in January, April, July and December each year. 6- A regular dividend of SAR 15,000 for 2022 will be paid in May 2024.
7- Company managers arranged a bank loan of SAR 100,000 that will be added to the company's current account in May 2024. 8- The bank's balance at the beginning of April 2024 is SAR 100,000. 9- The cash sale rate is 20% and the term purchase is 25%. Required: Preparation of the company's estimated cash balance for the second quarter of 2024. company XXXX Cash Balance Second Quarter 2024 One company is concerned about its cash flows, so it asked the accountant to prepare a cash balance for the three months ended June 31, 2024. The data provided are as follows: March .Feb .Jan 124,000 110,000 100,000 123,000 92,000 month sales 80,000 procurement 22,000 salary 1- Sales are expected to increase by 12% each month and purchases will increase by 8% every month from April. 2- The company's collection policy is based on the collection of 20% in the same month of sale and 40% in the following month of sale and the remainder two months after the date of sale. 3- The payment policy for purchases is based on payment of 25% in the same month and 30% in the following month and the remainder two months after the date of purchase. 4- The company expects salaries from February to increase by 15%. 5- Rent amounts to SAR 120,000 per year, paid in advance every three months in January, April, July and December each year. 6- A regular dividend of SAR 15,000 for 2022 will be paid in May 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:7- Company managers arranged a bank loan of SAR 100,000
that will be added to the company's current account in May
2024.
8- The bank's balance at the beginning of April 2024 is SAR
100,000.
9- The cash sale rate is 20% and the term purchase is 25%.
Required: Preparation of the company's estimated cash balance for
the second quarter of 2024.
company XXXX
Cash Balance
Second Quarter 2024
One company is concerned about its cash flows, so it asked the
accountant to prepare a cash balance for the three months ended June 31,
2024.
The data provided are as follows:
March .Feb .Jan
month
124,000 110,000 100,000 sales
123,000 92,000 80,000 procurement
22,000 salary
1- Sales are expected to increase by 12% each month and
purchases will increase by 8% every month from April.
2- The company's collection policy is based on the collection of
20% in the same month of sale and 40% in the following
month of sale and the remainder two months after the date of
sale.
3- The payment policy for purchases is based on payment of
25% in the same month and 30% in the following month and
the remainder two months after the date of purchase.
4- The company expects salaries from February to increase by
15%.
5- Rent amounts to SAR 120,000 per year, paid in advance every
three months in January, April, July and December each year.
6- A regular dividend of SAR 15,000 for 2022 will be paid in May
2024.
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