Adelphi Company has budgeted activity for March to reflect a net income of $135,000. All sales are credit sales. Receivables are planned to increase (decrease -) by $21,000 payables to increase (decrease -) by $1,000 and Depreciation Expense is $48,000. Use this information to determine how much cash will increase (decrease) during March.

Adelphi Company has budgeted activity for March to reflect a net income of $135,000. All sales are credit sales. Receivables are planned to increase (decrease -) by $21,000 payables to increase (decrease -) by $1,000 and Depreciation Expense is $48,000. Use this information to determine how much cash will increase (decrease) during March.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 18E: Carmichael Corporation is in the process of preparing next years budget. The pro forma income...

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A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
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