Describe the seasonal scenario that can influence a restaurant’s cash flow within one year of operation. In the scenario, your business faces a cash flow issue, and you just have RM15,000 in your account. Which of the following payments you are going to initiate first and why?Outstanding payment to your main supplier which supplies the main fresh ingredients daily (RM 9,500).Utility bill that you have received the second warning (RM 3,500).Monthly Payroll which overdue for 10 days (RM 17,000).Monthly rent which you have not paid for 3 months (RM 10,000).

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Answered: Describe the seasonal scenario that can…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Describe the seasonal scenario that can influence a restaurant’s cash flow within one year of operation. In the scenario, your business faces a cash flow issue, and you just have RM15,000 in your account. Which of the following payments you are going to initiate first and why?

Outstanding payment to your main supplier which supplies the main fresh ingredients daily (RM 9,500).
Utility bill that you have received the second warning (RM 3,500).
Monthly Payroll which overdue for 10 days (RM 17,000).
Monthly rent which you have not paid for 3 months (RM 10,000).

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