Calculate Cash Budget ( Calculation of Account Receivable and Account Payable amount for the months of January, February, March & April, 2022 November December January February March April Credit Sales 150,000 160,000 180,000 200,000 225,000 250,000 130,000 150,000 170,000 180,000 200,000 225,000 Credit Purchase Accounts receivable regularly settle their accounts as follows: * 50% pay in the month following sale (these accounts take advantage of a 10% discount) in the 2nd month * 30% pay * 10% pay in the 3rd month * The balance is written off as bad. Accounts payable are settled in the month following purchase. From 80% of suppliers, a discount of 5% is received. For the remaining 20%, in the second month of credit purchase.
Calculate Cash Budget ( Calculation of Account Receivable and Account Payable amount for the months of January, February, March & April, 2022 November December January February March April Credit Sales 150,000 160,000 180,000 200,000 225,000 250,000 130,000 150,000 170,000 180,000 200,000 225,000 Credit Purchase Accounts receivable regularly settle their accounts as follows: * 50% pay in the month following sale (these accounts take advantage of a 10% discount) in the 2nd month * 30% pay * 10% pay in the 3rd month * The balance is written off as bad. Accounts payable are settled in the month following purchase. From 80% of suppliers, a discount of 5% is received. For the remaining 20%, in the second month of credit purchase.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Calculate Cash Budget ( Calculation of Account Receivable and
Account Payable amount for the months of January, February,
March & April, 2022
November December January February March April
Credit Sales 150,000 160,000 180,000 200,000 225,000 250,000
130,000 150,000 170,000 180,000 200,000 225,000
Credit
Purchase
Accounts receivable regularly settle their accounts as follows:
* 50% pay in the month following sale (these accounts take
advantage of a 10% discount)
* 30% pay in the 2nd month
* 10% pay in the 3rd month
* The balance is written off as bad.
Accounts payable are settled in the month following purchase.
From 80% of suppliers, a discount of 5% is received.
For the remaining 20%, in the second month of credit purchase.
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